Cargo Breaking News
C K Govil, President, ACAAI said, “The impact of U.S. trade tariffs on Indian air cargo EXIM (Export-Import) trade is multifaceted, influencing both opportunities and challenges for the industry. Negative impact could be higher costs for Indian exporters as increased tariffs on Indian goods—such as steel, aluminum, and certain textiles make them less competitive in the U.S. market, potentially leading to a decline in export volumes via air cargo. Tariff uncertainty causes fluctuations in demand, impacting freight forwarders, air cargo handlers, and exporters. Volatility in trade policies forces businesses to frequently adjust logistics strategies. Some Indian exporters may shift focus to non-U.S. markets, affecting established air cargo routes and reducing volume on traditional U.S.-bound shipments. Positive impact could be
Opportunities in trade diversion, as U.S.-China trade tensions continue, Indian exporters in sectors like electronics, pharmaceuticals, and engineering goods may benefit from increased demand. This could boost air cargo volumes from India to the U.S. India is increasingly exporting high-value goods like pharmaceuticals, IT hardware, and perishables. Despite tariffs, demand for such critical goods remains strong, sustaining air cargo movements. Companies are optimising supply chains by integrating multimodal logistics (air-sea, air-land) to offset tariff-related costs, leading to new opportunities for air freight operators. India has been proactive in negotiating trade agreements with the U.S. to mitigate tariff impacts. The India-U.S. trade dialogue and initiatives like the Indo-Pacific Economic Framework (IPEF) could lead to tariff relaxations, benefitting air cargo. Indian exporters and air cargo players are investing in agility, technology, and alternative trade routes to mitigate risks. Overall, while U.S. tariffs create short-term disruptions, India’s air cargo EXIM sector is adapting by diversifying markets and strengthening supply chain resilience.
