TAC Index data shows China-US airfreight rates climbing to $5 per kg amid renewed trade disputes, with Trump threatening 100% tariffs from November
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Airfreight rates from China to the US were on the rise last week, while the trade war between the two countries reignited following a dispute over rare earth minerals.
Figures released earlier this morning from TAC Index show that average airfreight rates from China to the US were on the rise last week, increasing 2.5% week on week to $5 per kg.
It is the first time rates on the trade have reached $5 per kg since mid-August. The increase comes after the Golden Week holiday that sees a pick up in demand as supply chains play catch-up.
Meanwhile, last week also saw the restart of the trade dispute between the US and China. Commenting on the rate increase, TAC said prices were up "at least ahead of the latest spat over trade and tariffs related to rare earths that erupted at the end of the week".
Last week saw US president Donald Trump threaten to increase tariffs on China to 100% from 1 November, on top of existing levies, in response to Beijing's decision to implement restrictions on the export of rare earth minerals used in items ranging from consumer electronics to cars.
The US has also implemented additional charges on China-built vessels calling at its ports and has threatened restrictions on Chinese airlines flying over Russia to reach the US, although the exact impact of these two measures is yet to be seen.
The dispute comes as the 10 November deadline for negotiations over a new trade deal between the two countries quickly approaches.
Back in May, the US and China froze their trade dispute, lowering tariffs from 145% on most Chinese goods to 30%, while China lowered its rate on most US exports from 125% to 10%.
However, while the tariffs may subdue air cargo demand levels in the longer term, in the shorter term they have provided a boost.
Air cargo demand levels this year have been growing at a surprising clip as companies have switched to airfreight to move goods quickly and avoid having to pay higher rates.
On the other hand, shippers have spent much of the year diversifying their supply chains away from China in response to the trade dispute between the two countries.
Figures from consultant and data provider Rotate show that between May 2024 and May 2025, exports of technology goods from China to the US decreased by 14,200 tonnes.
Conversely, the export of technology goods from other Asia Pacific countries to the US has increased by 43,000 tonnes between the two dates.
