How NAFTA still propels airfreight in the Americas

Singapore freight forwarders – Star Concord
18-Nov-2025

When NAFTA launched in 1994, most people in airfreight probably didn’t realise the pact would shift the ground beneath their feet someday. For perspective, the agreement tore down trade barriers between the US, Mexico, and Canada, and suddenly, just-in-time manufacturing wasn’t just possible; it became the norm. Companies built fast supply chains that crossed borders multiple times before a product was finished. And that’s how things still work today, even though NAFTA technically doesn’t exist anymore. Its successor, the USMCA, took effect in July 2020, but the framework of the system remains.

NAFTA’s tariff cuts worked hand-in-glove with Mexico’s maquiladora programme. American and Canadian companies realised they could source parts regionally, assemble near the border, and ship fast to keep warehouses empty. For expensive, lightweight goods, such as electronics or medical devices, airfreight has become essential. Even when trucks did the heavy lifting, planes handled the emergencies: late parts, last-minute design tweaks, product launches. Do that enough times, and it stops being an emergency. Eventually, it just becomes how you operate.

What the USMCA changed, and why we feel it

The USMCA kept most of the tariff-free framework but made the auto industry jump through new hoops. Now, 75 percent of a vehicle’s content has to come from North America, and 40–45 percent has to be made by workers earning at least US$16 an hour. On top of that, 70 percent of steel and aluminium purchases must be sourced regionally. The goal was to keep production close to home, and it worked. Parts kept moving between plants, often by air when production schedules got tight.

The deal also raised the bar for small shipments. Canada bumped its courier limits to C$40 tax-free and C$150 duty-free. Mexico set its thresholds at US$50 tax-free and US$117 duty-free for goods from USMCA partners. The US kept its US$800 threshold. These changes made life easier for express carriers and small businesses shipping across borders. But then came 29th August 2025, when the US pulled the plug on de minimis exemptions for imports from Canada, Mexico, and most other countries. Suddenly, every small parcel faced duties and customs paperwork. The economics of cross-border e-commerce were flipped overnight.

Where things stand today

USMCA is now the engine behind North America’s nearshoring boom. Mexico is pulling in semiconductors, electronics, aerospace work, and medical device manufacturing; all cargo where speed matters more than cost. Airfreight demand has stayed strong through 2024 and 2025, driven by e-commerce and companies hedging their supply chain risks.

But it hasn’t been smooth. The US de minimis rollback in August hit parcel volumes hard and forced carriers to rethink trans-Pacific routes. Then there’s Mexico’s 2023 decision to move cargo operations from Mexico City International Airport out to Felipe Ángeles Airport, 35 kilometres north. The new airport works fine, but the extra distance adds time and cost, a reminder that politics doesn’t necessarily follow logistics.

The hubs that won

Integration favoured airports with scale. Memphis and Louisville dominate express networks. Cross-border trucking gateways like Laredo funnel cargo to air uplift points in Dallas–Fort Worth, Houston, Chicago, Phoenix, and L.A. Toronto and Vancouver run the show in Canada.

What’s next?

There are things to keep an eye on: the July 2026 USMCA review, where everything from auto rules to de minimis could get reopened; continued nearshoring flowing into Mexico and Canada; and digital border tools making trusted-trader programmes more powerful. The thread connecting all of it back to 1994? Speed wins, and reliable airfreight keeps the system running.

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Author: Edward Hardy