The United States and China have agreed to a one-year trade truce following talks between U.S. President Donald Trump and Chinese President Xi Jinping in Busan, South Korea — a move expected to have significant implications for air cargo and global supply chains.
Under the deal, the U.S. will cut tariffs on Chinese goods to around 47% from 57%, while China will suspend its restrictions on rare-earth exports and resume large-scale purchases of American soybeans.
Both sides described the agreement as a step toward restoring “stability” in international trade after months of escalating tariffs and retaliatory measures that disrupted logistics and manufacturing networks across Asia.
Air cargo operators are now closely monitoring how quickly freight flows normalise, particularly for high-value electronics, automotive components, and industrial materials dependent on cross-Pacific routes.
Analysts say the restoration of rare-earth shipments could help ease pressure on supply chains for advanced technology sectors — many of which rely on air transport for time-sensitive materials.
However, logistics experts warn that the truce’s one-year timeframe may limit long-term planning confidence among freight forwarders and exporters. “Air cargo volumes could rebound sharply in the short term,” said one Hong Kong-based analyst, “but the market remains wary until both sides demonstrate lasting policy consistency.”
Attention will now turn to whether Washington and Beijing can build on this momentum at upcoming APEC and G20 summits, potentially laying the groundwork for a longer-term trade accord.
For now, air cargo markets in Asia and the Pacific are expected to respond quickly as tariff relief and rare-earth exports begin to reshape regional trade flows and capacity demand.
