Air, Forwarding, Freight News


Forwarders and traders call for cool heads on tariffs

[ March 5, 2025   //   ]

The Airforwarders Association (AfA) in the US has called for caution at a meeting of its members at its annual conference in Dallas on 4 March following Trump’s announcements of tariffs on Canada, Mexico and China.

AfA executive director, Brandon Fried, said: “We understand the political and economic reasoning behind the tariffs, but there must be stability to allow the logistics sector to plan and support US businesses.”

“Overnight changes, as in the case of the proposed 25% Colombian tariff, are damaging to the supply chain.

“If reciprocal tariffs are put in place just as quickly, then a bilateral agreement may be harder to negotiate, and we risk placing ourselves in a position of uncertainty.”

A survey conducted during the meeting revealed that 62% of AfA members were highly concerned about how the new wave of tariffs will affect their business operations.

“This could be trouble for the US economy, for the American consumer, and for air freight forwarders’ businesses,” said Fried.

The conference also featured a panel discussion on changes to air cargo policy under the new Trump administration, where tariffs dominated the conversation, with multiple panelists arguing that the tariffs are punitive in nature and will likely trigger retaliatory measures from trading partners.

In the UK, Umar Butt, chief executive of the UK and Europe at Aramex said however, that, amid the challenges, there is however a glimmer of hope for UK firms following recent discussions between Prime Minister Keir Starmer and President Donald Trump on a potential US-UK trade deal, which could help shield the UK from the direct impact of global trade tensions.

Meanwhile, Butt said, despite concerns over trade protectionism and intensifying economic headwinds, the World Economic Forum’s latest Chief Economists Outlook says that nearly half of the world’s leading economists expect global trade volumes to increase this year.  However,  56% of chief economists surveyed also suggested the global economy will come under pressure in 2025, with 93 percent predicting that supply chain restructuring will change trade patterns over the next three years.

Much of this restructuring, is due to the unpredictability of the global landscape, with imposed tariffs and ongoing tensions such as those in the Red Sea likely to remain a consistent theme over the remainder of the year.

Although recent Houthi statements indicate that the group will halt attacks on most vessels passing through the Red Sea, they have still vowed to continue targeting Israeli ships, along with any vessels that have direct or indirect ties to Israel, such as the US and the UK.

Butt said: “Adaptability and resilience are key. Those that invest in flexible, future-proofed logistics solutions will be best positioned to navigate disruptions. Multimodal solutions, which combine road, sea and air transport, offer a more malleable logistics method to help businesses navigate disruptions more effectively.”

Stephen Dyke, principal solutions consultant manager at visibility specialist, FourKites said: “The additional tariffs on China, Mexico and Canada are forcing companies across industries to take strategic measures to mitigate risks. The most vulnerable sectors include electronics, machinery, plastics, and furniture, where China has traditionally dominated as a supplier.
Companies are moving away from business as usual purchasing patterns toward more demand-assured procurement strategies – organizations caught with excessive high-tariff inventory amid dropping consumer demand will face a significant financial burden.”
In the near term, consumers should expect: price increases, extended lead times and less choice.
Companies are also re-evaluating their logistics networks based on product demand patterns and optimal transportation methods for different volumes.
While domestic sourcing offers a potential long-term solution for many categories, the transition requires time, investment, and careful planning, Dyke said.
In addition, the elimination of the $800 de minimis threshold will fundamentally reshape cross-border trade, forcing importers to navigate full customs clearance for over 1.3 billion shipments annually that previously entered duty-free with minimal formalities. This would add administrative costs and create significant delays at ports of entry as customs officials process a surge of formerly exempt parcels. E-commerce retailers and direct-to-consumer brands that relied on drop-shipping items directly from overseas will switch to importing in bulk into US warehouses for domestic fulfilment, increasing their operational costs.

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