Air Cargo Set to Lose $22 Billion
Just how large of an impact will the new taxes have on the logistics industry? Air cargo alone may lose more than $22 billion in revenues across three years, according to a new analysis.
“The Cirrus Global Advisors model shows the airfreight industry revenue could contract $22 billion if the White House maintains tariffs at 125% for a substantial period of time, based on assumptions about lower consumer demand, excess airline capacity and downward pressure on yields,” sums up FreightWaves in a new article that draws on insights from the Seattle-based consultancy Cirrus Global Advisors.
Since that 125% tariff increase was cited, the White House has clarified that the increase includes a previous tariff and is actually 145% in total. Regardless, it’s a clear indicator that the total losses to business operations will easily number among the billions.
