U.S. Ends Duty-Free Imports from China, Shaking Air Cargo Market

As of May 2, the U.S. has ended its de minimis exemption for Chinese and Hong Kong imports under $800, a move expected to disrupt air cargo and e-commerce. These packages now face a 120% tariff or $100 flat fee, rising to $200 in June. Daily shipments under the exemption had reached 4 million in 2024. Online retailers like Shein and Temu, previously reliant on the loophole, are raising prices. Air cargo volumes have already dropped 15% year-on-year, and freight capacity is being redeployed, signaling broader global trade impacts in the weeks ahead.