The world's top two economies have been locked in a trade war since last year, swapping tit-for-tat duties on hundreds of billions of dollars worth of goods and sending markets into a tailspin.
The fallout has gone far beyond their shores, with manufacturing in many export-dependent Asian economies taking a hit.
It said air cargo volumes are expected to grow 2.0 per cent this year, nearly halving its projection made in December for 3.7 per cent.
"We are facing a problem with world trade... Cross-border trade is weakening very sharply and that's the thing that's damaging our business in the cargo world," IATA chief economist Brian Pearce said.
The group said uncertainty over Brexit and general protectionism was also hitting air cargo growth.
US and Chinese officials have said they are making progress toward a resolution of the trade dispute but conflicting messages out of Washington and Beijing mean it is still not clear when a deal may finally be sealed.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)