Good morning.

A new U.S. shipbuilding coalition — the USA Shipbuilding Coalition — backed by unions and industry groups, has launched a lobbying push to advance the SHIPS for America Act, legislation designed to expand U.S.-built vessels, strengthen the merchant fleet, and revive domestic shipyard capacity.

Supporters say the effort aligns with a broader push to rebuild industrial capacity and counter China’s maritime dominance.

Let’s dive into today’s edition.

On April 20, the U.S. launched its new CAPE portal for businesses to claim refunds on tariffs ruled illegal by the Supreme Court, with up to $175 billion potentially eligible for repayment. More than 56,000 importers have already registered, though only certain tariff payments qualify in the system’s first phase.

Refund Process: Refunds are not automatic; businesses must file claims themselves. U.S. Customs says valid claims may take 60 to 90 days after approval to be paid, while some disputed claims may take far longer. Analysts estimate that about 63% of eligible refunds could move through relatively soon, while the rest may take years.

Trump Card: President Donald Trump said to CNBC he would “remember” companies that choose not to seek refunds on tariffs later ruled illegal by the Supreme Court. His remarks also drew attention to major companies, including Apple and Amazon, which have yet to file refund claims.

UPS, FedEx, and DHL are preparing to reimburse customers for tariffs they paid on imported packages, following the launch of the U.S. government’s refund portal. The companies said most customers will receive refunds automatically, though some brokerage or administrative fees may not be reimbursed.

The Trump administration is extending its emergency waiver of the Merchant Marine Act of 1920 for another 90 days, allowing more foreign-flagged vessels to move petroleum and fertilizer products between U.S. ports as fuel markets remain tight. It marks the longest and broadest use of the waiver since World War II.

What is happening? About 40 foreign-flagged vessels have already moved cargo under the waiver, helping transport roughly nine million barrels of petroleum, including shipments to California and Alaska. The administration argues the move reduces friction in domestic fuel logistics as geopolitical tensions keep prices elevated.

Big Picture: The extension is drawing backlash from U.S. shipowners, who warn it could undermine domestic maritime capacity and weaken the American shipping industry. The debate is turning the waiver into a broader fight over energy security, shipping resilience, and the future of U.S. maritime policy.

USA Rare Earth plans to acquire Serra Verde in a $2.8 billion deal aimed at building one of the few Western supply chains for heavy rare earths outside China. The deal combines Brazilian feedstock with U.S. processing and magnet-making capacity, advancing efforts to reduce dependence on Chinese supply.

What’s the deal? At the center of the deal is Serra Verde’s Pela Ema mine in Brazil, one of the few producers outside China of dysprosium and terbium — rare earths critical for permanent magnets used in defense systems, wind turbines, and electric vehicles. Serra Verde is expected to account for more than half of global heavy rare-earth production outside China by 2027.

Separately, on April 17, USA Rare Earth announced its first production of commercial-grade yttrium metal at its Cheshire facility (northwest England) through its subsidiary, Less Common Metals.

The Trump administration is considering tougher North American auto trade rules that could raise costs on imported vehicles and push more production into the U.S. Proposals under discussion include stricter U.S. content requirements and limits on how automakers lower tariff rates under the USMCA.

The review reflects frustration that tariffs and industrial policy have yet to trigger the scale of reshoring Washington hoped for, even as automakers have announced new investments. One option being weighed could effectively raise tariffs on some USMCA-compliant vehicle imports, potentially reshaping supply chains built across North America.

The discussions come ahead of a July 1 decision on whether to extend USMCA, giving the debate broader significance for the future of regional automotive manufacturing. If pursued, the changes could mark one of the biggest shifts in North American auto trade rules since the pact took effect.

U.S. trucking activity edged up 0.3% in March after a strong February gain, with the American Trucking Associations saying the sector posted its strongest year-over-year growth since October 2022. The truck tonnage index rose 3% from a year earlier, signaling improving freight demand.

Best Performance: The first quarter marked trucking’s best performance since 2017, helped by steady contract freight volumes tied to manufactured and retail goods. The data is notable because trucking moves nearly 73% of U.S. domestic freight tonnage, making it a key barometer of broader economic activity.

Big Picture: The gains add to signs that U.S. freight markets may be stabilizing after a prolonged slowdown, with stronger trucking volumes reinforcing resilience across domestic supply chains and goods movement.

The U.S. is weighing possible enforcement action against Canada over provincial boycotts of American wine and spirits, with U.S. Trade Representative Jamieson Greer warning the dispute may require a formal response. The boycott began after retaliatory measures tied to U.S. tariffs and has cost American alcohol producers millions in lost sales.

Spirited Away: The standoff centers largely on Ontario and Quebec, which together represent about 60% of Canada’s population and have removed U.S.-made alcohol from store shelves. Canadian officials have signaled that those restrictions could remain until broader tariff disputes and concerns over the auto sector are addressed.

The dispute is adding fresh friction to North American trade relations ahead of key USMCA discussions, showing how tariff tensions are spilling beyond industrial goods into consumer trade and political retaliation.

U.S. freight rail traffic climbed 2.5% year over year in the week ended April 18, with total volume reaching 508,303 carloads and intermodal units, according to the Association of American Railroads. Growth was driven by gains in both carloads and intermodal traffic.

Intermodal volume rose 2.2% to 277,554 containers and trailers, while carloads increased 3% to 230,749. Commodity shipments were led by strong gains in grain, up 22.9%, and petroleum products, up 15.5%, indicating resilience in agricultural- and energy-linked freight demand.

The results add to signs that freight activity is holding up despite supply chain volatility, with intermodal demand continuing to support rail growth. Rising volumes across the U.S., Canada, and Mexico also point to steady North American trade flows as rail remains a critical backbone for regional logistics.

Traffic through the Panama Canal is rising sharply as buyers reroute cargoes around disruptions in the Strait of Hormuz, pushing vessel wait times to about three-and-a-half days — the longest since the canal’s drought crisis.

Rising Prices: According to a Bloomberg report, the strain is also pushing up the cost of priority access. One liquefied petroleum gas tanker recently paid $4 million at auction to move to the front of the transit line, up from less than $1 million that some vessels were paying in early March.

Future Outlook: Analysts say competition for canal slots is likely to remain firm as trade routes continue to shift around geopolitical disruptions. With buyers leaning more on U.S. supply and shipping lanes under pressure, the Panama Canal is emerging as another critical pressure point in global supply chains.

China’s solar exports surged to a record 68 gigawatts in March, doubling from the previous month as countries rushed to secure supplies amid rising energy insecurity. The surge was driven largely by stronger demand from Asia and Africa, regions heavily exposed to fossil fuel disruptions tied to the Strait of Hormuz crisis.

Increasing Imports: Imports into Africa surged 176% month over month, while Asia doubled, as countries most exposed to fossil fuel volatility accelerated solar purchases. At the same time, exports of solar cells and wafers climbed even faster than panel shipments, signaling a broader push by countries to expand local assembly and manufacturing.

Big Picture: According to Ember, record solar growth last year displaced gas-fired power equivalent to all LNG shipments through the Strait of Hormuz, while the global EV fleet cut oil demand by 1.8 million barrels per day.