Auto Tariffs from April, Hyundai Goes Big in the US, Kroger Sues Albertsons

Welcome to CrossDock’s Weekly Dispatch,

We’re back with the key headlines shaping supply chains, retail, logistics, and e-commerce this week. From fresh auto tariffs kicking in from April to Hyundai doubling down on its US manufacturing, and Kroger dragging Albertsons to court, here’s a quick overview of last week’s biggest developments.

Big News 📣

Trump Imposes 25% Tariff on Imported Automobiles

In a move set to reshape the global auto landscape, U.S. President Donald Trump announced a 25% tariff on all imported vehicles and auto parts, effective April 3, 2025. The White House claims this will boost domestic manufacturing, but automakers and analysts warn of higher costs, shrinking sales, and a global trade ripple effect.

Trump stated the auto tariffs would generate $100 billion annually and reverse what he called a "ridiculous" cross-border supply chain.

• Market Reacts 📉: General Motors stock fell 7%, Ford dropped 4%, and Stellantis slid 1.25%. Interestingly, Tesla and Rivian stocks surged

• Global Pushback 🌍: Germany declared it "will not give in," France called it "a waste of time," and Canada labeled it a "direct attack."
  

• Warning call ⚠️ : President Trump threatened “far larger” tariffs if the EU and Canada unite to retaliate against his new 25% auto import duties

U.S. Trade Deficit Shrinks and Inventories Grow

Here are the seven key takeaways from the U.S. Advance Economic Indicators Report for February 2025, released on March 27:

✅ U.S. goods trade deficit dropped to $147.9 billion, down from January’s $155.6 billion.

✅ Exports rose by $7 billion to $178.6 billion, driven by industrial supplies and capital goods.

✅ Imports dipped to $326.5 billion, a marginal decline from January

✅ Wholesale inventories grew 0.3% month-over-month, totaling $902.9 billion

✅ Retail inventories rose by 0.1%, reaching $823 billion — up 4.6% year-over-year

✅ Exports of automotive vehicles soared 12.7%, with capital goods exports up 4.8% despite tariff tensions

✅ Capital goods exports rose to $59.3 billion in February 2025, up 4.8% from January and 12.2% higher year-over-year

To check out the full report, click here

Copper Prices Hit Record High Amid Tariff Speculation

New York copper futures surged to an all-time high of $5.24 per pound, rising 30% this year. The spike follows reports that President Trump may soon impose tariffs on copper imports, prompting U.S. buyers to stockpile the metal.

Traders are front-loading shipments, with March imports expected to hit 500,000 tons — seven times the usual volume. Analysts warn the surge is driven by tariff anxiety, not consumer demand. Globally, copper supplies remain tight, with demand expected to outpace production by 2035. A price correction is likely if U.S. demand stabilizes post-tariff announcement.

US Targets Venezuelan Oil Trade with New Tariff

In a fresh escalation of economic pressure, President Trump has signed an executive order imposing a 25% tariff on goods from any country that imports Venezuelan oil.

Set to begin April 2, 2025, the measure is framed as a response to Venezuela’s continued "threat to US national security" and its ties to criminal groups like Tren de Aragua.

The tariff is designed to discourage global buyers from dealing in Venezuelan crude, indirectly isolating the Maduro regime. Countries will face tariffs even if oil is purchased indirectly through intermediaries. The order also empowers US officials to track, enforce, and review the policy’s impact every six months.

TLDR 🗓️

USPS Postmaster General Steps Down

Louis DeJoy has stepped down as the United States Postmaster General, effective March 24, 2025, after nearly five years at the helm. Deputy Postmaster General Doug Tulino has been named acting Postmaster General until a permanent successor is appointed.

DeJoy’s tenure was marked by major operational reforms and controversies, including leading the USPS through the COVID-19 pandemic and rolling out the "Delivering for America" plan to improve financial stability.

Recently, the U.S. Postal Service has signed an agreement with Elon Musk’s DOGE to help restructure the struggling agency.

Hyundai Announces $21 Billion US Investment

South Korean automaker Hyundai has unveiled a massive $21 billion investment plan in the US to expand manufacturing and technology partnerships. The move comes as President Trump signals new tariffs on foreign car imports, possibly targeting South Korea.

Hyundai’s investment includes a $5.8 billion steel plant in Louisiana and a $7.5 billion car and battery factory in Georgia, creating over 14,000 full-time jobs. The company also plans to invest in AI, robotics, and autonomous driving technology with US firms. Trump welcomed the announcement, calling it proof that tariffs "strongly work."

US Consumer Confidence Falls to Lowest Level Since 2013

US consumer confidence declined sharply in March, marking its fourth consecutive monthly drop. The Conference Board’s Consumer Confidence Index fell by 7.2 points to 92.9, the lowest reading in 12 years.

The Expectations Index, which reflects consumers’ short-term outlook, dropped to 65.2, well below the level that typically signals a recession. Concerns about inflation, job prospects, and the impact of tariffs contributed to the decline.

Confidence fell most among consumers over 35, while younger consumers remained slightly more optimistic. Purchasing plans for homes and cars also weakened. The Conference Board warned that continued pessimism may weigh on economic growth.

China Urges Global CEOs to Safeguard Trade Supply Chains Amid US Tariff Threats

Chinese President Xi Jinping has called on global business leaders to defend stable supply chains as US-China trade tensions escalate. Speaking in Beijing, Xi warned against "regressive moves" that disrupt global trade, referencing looming US tariffs under President Trump.

He urged CEOs from firms like FedEx and Standard Chartered to resist policies that "turn back the clock." Xi also promised fair treatment for foreign firms operating in China. The remarks come days before new US retaliatory tariffs are set to take effect.

Dollar Tree Sells Family Dollar for $1 Billion After Struggles

Dollar Tree has agreed to sell its struggling Family Dollar chain for $1 billion, ending a troubled decade-long ownership. The discount retailer is offloading Family Dollar to private equity firms Brigade Capital Management and Macellum Capital Management.

Dollar Tree had bought Family Dollar in 2015 for $9 billion but faced operational challenges, store closures, and growing losses. Inflation, tariff pressures, and stiff competition from Walmart and Dollar General worsened Family Dollar’s position. The sale includes around 8,000 Family Dollar stores across the US. According to the company, the deal will help refocus its business and boost shareholder value.

Trump’s Lumber Tariffs Risk Disrupting US Toilet Paper Supply

The Trump administration’s plan to hike tariffs on Canadian softwood lumber could lead to a toilet paper supply crunch, according to industry experts. The proposed duties, set to rise to 27% and potentially exceed 50%, threaten the supply of Canadian northern bleached softwood kraft pulp — a key ingredient in toilet paper and paper towels.

Canadian mills supply around 2 million tons of this pulp annually to the US. Higher tariffs may force mill closures, cut pulp supply, and drive up consumer prices. Industry leaders warn the move could revive memories of pandemic-era shortages and add pressure on US paper goods manufacturers.

Trump Hints at Tariff Relief for China to Secure TikTok Sale

US President Donald Trump has hinted at easing tariffs on China in exchange for Beijing’s approval of TikTok’s sale. ByteDance, TikTok’s Chinese parent company, faces an April 5 deadline to divest its US operations or face a ban.

Trump acknowledged that China’s approval would be key to finalizing any deal and suggested a tariff reduction could help move talks forward. The sale has become a top priority for the administration amid national security concerns. TikTok has not commented on Trump’s latest remarks. Talks are reportedly focused on increasing US investor stakes in TikTok’s US arm.

Kroger Countersues Albertsons

​Kroger has filed a countersuit against Albertsons following the collapse of their proposed $25 billion merger. Albertsons had previously sued Kroger for breach of contract, seeking billions in damages and a $600 million termination fee.

Kroger's countersuit alleges that Albertsons engaged in misconduct during the merger process, including secret collaborations with C&S Wholesale Grocers to influence divestiture strategies. Albertsons denies these claims, asserting that Kroger failed to fulfill its contractual obligations. The legal battle continues as both companies seek to recover investments and damages related to the failed merger.

US Blacklists Over 50 Chinese Firms

The US has added more than 50 Chinese tech companies to its export blacklist, aiming to restrict China’s access to advanced computing and AI technology. The move marks the Trump administration's first major export control action against China.

The Commerce Department cited national security concerns, accusing firms of supporting Beijing’s military modernization. Blacklisted entities include subsidiaries of Inspur Group and suppliers linked to Huawei. China’s foreign ministry condemned the move, calling it "arbitrary and illegal."

TikTok Shop Expands in Europe Despite US Uncertainty

TikTok Shop announced its expansion into France, Germany, and Italy as it pushes further into Europe amid an uncertain future in the U.S. The platform has been operational in the UK since 2021 and launched in the U.S. in 2023, but faces a potential ban unless parent company ByteDance finds an American buyer by April 5.

The European launch will include major retail partners like Carrefour in France and AboutYou in Germany. TikTok Shop plans to onboard more local sellers to diversify beyond Chinese merchants.

Tidbits 🍿

• J.P. Morgan has launched its embedded finance solution for Walmart Marketplace sellers, unveiled at Shoptalk 2025 in Las Vegas. The integration streamlines payments, offering faster payouts and seamless fund management within the platform

• ​NBA star Stephen Curry and former First Lady Michelle Obama have collaborated to launch PLEZi Hydration, a new sports drink

• ​Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection amid declining demand and privacy concerns

• ​Saratoga Spring Water, owned by Primo Brands Corp., has recently gained significant attention due to a viral TikTok trend. Shares of Primo Brands experienced a notable uptick

• ​Infinite Reality, a tech startup specializing in immersive experiences, has acquired Napster for $207 million. The company plans to transform Napster into a social music platform

Reading List 📚 :

This week's top book picks from CrossDock 📖:

• Delivering Happiness by Tony Hsieh

• Outside the Box by Marc Levinson

Do you have recommendations? Drop us a message, and we will add it to next week’s list.

This newsletter was curated by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!