Air Cargo Market Updates (Jan 29, 2025)

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- Toby Raworth / Commercial Director, Pelicargo (January 29, 2025)

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Industry News:

U.S.-Colombia Tariff Standoff Ends in Compliance Over Deportees

U.S. President Donald Trump threatened a 25% emergency tariff on Colombian imports, escalating to 50%, after Colombia initially refused to accept deportation flights carrying illegal immigrants. Trump accused Colombian President Gustavo Petro of jeopardizing U.S. security and warned of additional sanctions, including visa revocations and enhanced cargo inspections. Facing economic pressure, Petro relented, agreeing to accept all deportees, including those transported on U.S. military aircraft. In response, the White House confirmed that tariffs and sanctions would be suspended as long as Colombia upheld the agreement.

Colombia, which exports nearly 80% of its flowers to the U.S., could have faced severe economic repercussions had the tariffs been implemented. LATAM Cargo transported nearly 13,000 tonnes of flowers from Colombia for Valentine’s Day 2024, marking a 19% increase from the previous year. Avianca Cargo also shipped over 14,000 tonnes for Mother’s Day, reinforcing Colombia’s crucial role in the floral supply chain. The resolution of the dispute ensures the stability of this vital trade, with Colombian officials set to continue discussions in Washington.

Source: STAT Times, CNBC

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