Court Blocks Trump’s Trade Tariffs 🚫

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Court Blocks Trump’s Trade Tariffs

A federal court has dealt a major blow to Trump’s economic agenda, blocking his sweeping “Liberation Day” tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). The court ruled that the tariffs, intended to punish countries with trade deficits, exceeded presidential authority and could not be justified as a national emergency. While Trump’s Section 232 tariffs on steel, aluminum, and autos remain intact, the decision halts broader emergency-based levies unless approved by Congress.

• Broken Chains ⛓️‍💥: Businesses and states argued that the tariffs disrupted supply chains and inflated costs without legal grounding.

• Legal actions ⚖️ : The administration has filed an appeal, but this marks a legal line in the sand—presidents can’t unilaterally overhaul trade policy on a whim. Trump may still use Section 122 of the 1974 Trade Act to impose short-term tariffs (15% for 150 days), but the court’s rejection undermines his broader tariff strategy.

Recent development: A U.S. federal appeals court ruled that President Trump can temporarily keep his tariffs in place under emergency powers. The decision reverses a lower court's block on key trade policies. His team argued the tariffs are vital for national security.

Trump Backs Off EU Tariff Threat, Extends Talks to July

After threatening a 50% tariff on all European Union imports, President Trump has backed down, agreeing to extend trade negotiations with the bloc until July 9. The reversal followed a call with European Commission President Ursula von der Leyen, who signaled the EU’s readiness to return to the table.

Just days earlier, Trump had dismissed the idea of a deal altogether, saying the tariff decision was final. But growing market concerns and mounting pressure from European officials prompted a shift in tone. The EU’s top negotiators have urged the U.S. to pursue talks based on mutual respect rather than threats.

WiseTech Acquires E2open for $2.1B in Landmark Deal

Australian logistics tech firm WiseTech Global has agreed to acquire U.S.-based supply chain software provider E2open for $2.1 billion—its largest deal to date.

The acquisition, funded through a new $3 billion debt facility, gives WiseTech access to 5,600 new customers and significantly expands its global footprint. WiseTech’s founder and new executive chairman, Richard White, called it a “pivotal moment,” positioning the company to become the operating system of choice for global trade.

The deal comes amid a volatile period for WiseTech, following leadership turmoil earlier this year, but signals a bold push to integrate end-to-end logistics—from order to fulfillment—under one platform. E2open reported $608 million in revenue last fiscal year and employs around 4,000 people. WiseTech shares rose over 6% after the news.

TLDR 🗓️

Trump Threatens 25% Tariff on Imported iPhones

President Trump has warned Apple that all iPhones sold in the U.S. must be made domestically, or face a 25% import tariff starting at the end of June. In a post on Truth Social, Trump stated that he had told Apple CEO Tim Cook "long ago" that U.S.-sold iPhones should be manufactured in the United States, not in India or elsewhere.

The threat comes after Apple ramps up production in India to diversify its supply chain away from China. Analysts suggest that relocating iPhone manufacturing to the United States could increase retail prices by 25% or more, with some estimates indicating that a U.S.-built iPhone would cost $3,500.

DHL Partners with Shopify to Expand Cross-Border Shipping

DHL Group has teamed up with Shopify to simplify global shipping for millions of merchants. The logistics giant is now pre-integrated into the Shopify Shipping platform, allowing sellers in the U.S. and Germany to access DHL’s full suite of services, including express and cross-border logistics, directly within Shopify.

The partnership removes the need for separate logistics onboarding and streamlines customs and tax compliance through Delivered Duty Paid (DDP) options. Both companies aim to eliminate fulfillment friction and provide easier access to global customers.

Trump Clears Path for Nippon Steel’s $14.1B Acquisition of U.S. Steel

President Donald Trump has given a conditional green light to Nippon Steel’s $14.1 billion acquisition of U.S. Steel, signaling a major shift in Washington’s stance on foreign ownership in a politically sensitive industry. Though Trump referred to the deal as a “partnership” rather than a takeover, the announcement moves the Japanese steelmaker significantly closer to completing the high-stakes transaction.

The deal had faced strong opposition from both Trump and former President Biden earlier this year. However, recent negotiations led Nippon Steel to pledge substantial new investments—including plant upgrades and a new U.S.-based mill—and to structure its North American operations with an American-led board and a federal compliance monitor.

According to Trump’s statement on Truth Social, the partnership is expected to create up to 70,000 jobs and add $14 billion to the U.S. economy within 14 months. The company has also agreed to honor all existing union agreements through 2026, though labor groups remain skeptical, citing Nippon’s history of low-cost steel exports.

U.S.-Bound Container Bookings Signal Trade Rebound in May

Global trade volumes are showing signs of recovery, with container bookings trending upward through May despite ongoing tariff volatility and sourcing shifts.

According to Vizion’s TradeView platform, global bookings hit a 2025 high the week of May 19, reaching 2.22 million TEUs—up 9.3% year over year. U.S.-bound volumes held strong at 476,681 TEUs, a slight dip from the previous week but still 17% above last year.

China-to-U.S. bookings, which surged 157% earlier in the month, cooled slightly to 216,709 TEUs—still up 28% YoY. Analysts link the spike to the temporary U.S.-China tariff pause, with daily China bookings more than doubling between May 9 and 16

Port Congestion Deepens Across Europe

Major European ports are experiencing increasing delays due to labor shortages, strikes, and inland transport issues, which are disrupting operations. Key hubs like Antwerp, Rotterdam, Hamburg, and Bremerhaven have seen average berth waiting times jump 37% to 77% since mid-March, according to Drewry.

A national strike in Belgium on May 20 briefly halted vessel movement at Antwerp-Bruges, worsening already strained conditions. Additionally, low water levels on the Rhine have further limited barge capacity, adding to inland congestion.

Commerce Dept. Clarifies the 25% Auto Tariff Calculation Process

The U.S. Commerce Department has issued new guidelines clarifying how automakers can qualify for reduced tariffs under Trump’s 25% import duty on vehicles and parts. Only the non-U.S. content of a vehicle will be subject to the tariff, and companies must now submit detailed documentation, certified by top executives, outlining U.S.-made and foreign-made components. The new rule aligns with USMCA definitions and could significantly impact cost calculations for over 200 regular importers and 13 original equipment manufacturers (OEMs) operating across North America.

Air Cargo Demand Rises 5.8% in April, Led by Asia-Pacific Surge

Global air freight volumes rose 5.8% year-over-year in April, according to the International Air Transport Association (IATA), marking the fifth consecutive month of growth. Asia-Pacific carriers recorded the strongest performance, with demand up 10% amid robust trade flows to North America.

Capacity expanded 7.1% globally, supported by additional freighter deployments and increased bellyhold availability. Lower jet fuel prices and a rebound in global manufacturing contributed to the uptick, while Europe, North America, Latin America, and Africa also posted steady gains. IATA noted that while market conditions are improving, risks from fuel volatility and geopolitical tensions remain.

Trump Orders U.S. Chip Software Firms to Halt Sales to China

The Trump administration has directed U.S. makers of chip design software to stop supplying their tools to Chinese firms, according to a report by the Financial Times. Letters from the U.S. Commerce Department were sent to companies including Cadence, Synopsys, and Siemens EDA, instructing them to suspend sales amid rising export control scrutiny.

The move targets electronic design automation (EDA) software, which is critical to producing advanced semiconductors, thereby heightening pressure on China's chip design ecosystem. The Commerce Department did not confirm the letters but said it is reviewing exports of strategic importance to China and may suspend licenses or impose new restrictions.

France and Germany Push to Scrap EU Ethical Supply Chain Laws

French President Emmanuel Macron and German Chancellor Friedrich Merz have called for a full repeal of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), signaling a major shift in the bloc’s green regulatory agenda. Speaking at Versailles, Macron said the law, which requires companies to monitor global suppliers for environmental and human rights abuses, should be “put off the table,” echoing Merz’s earlier demand for its “complete repeal.”

The directive, long criticized by businesses as burdensome, is already set for delay and revision as part of the European Commission’s “simplification package.” But Macron and Merz’s alignment marks the first serious push for total repeal—an escalation of the EU’s pro-business pivot.

China–U.S. Container Rates Surge After Tariff Pause

Container freight rates from China to the U.S. have spiked sharply following a temporary pause in tariff enforcement, according to maritime consultancy Drewry. Rates from Shanghai to New York rose 19% ($704) to $4,350 per 40-foot container, while Shanghai to Los Angeles jumped 16% ($423) to $3,136. The increase reflects surging trans-Pacific demand and tightening capacity.

Drewry expects further rate hikes in the coming weeks, citing ongoing space shortages and robust booking volumes. The World Container Index composite rose 8% to $2,233, still 78% below the September 2021 pandemic peak but 57% higher than pre-pandemic 2019 averages.

Other global routes remained stable or saw minor declines, with Europe-bound lanes such as Shanghai to Rotterdam and Genoa down 1%. Rates from Rotterdam to Shanghai and Los Angeles remained flat.

Tidbits 🍿

• CMA CGM has signed a $600M deal with Saigon Newport to build terminals 7 & 8 at Haiphong’s Lach Huyen port—its first terminal venture in northern Vietnam. Set to open in 2028, the project will add 1.9M TEUs in capacity and marks a major expansion of the French shipping giant’s Southeast Asia footprint

• A Liberia-flagged cargo ship, MSC ELSA 3, sank off southern India carrying 640 containers, 13 with hazardous cargo, and over 450 tons of fuel. Authorities are on high alert as containers begin washing ashore

• President Trump signed executive orders to fast-track new reactor approvals, boost domestic uranium mining, and expand small nuclear plants, aiming to power AI/data centers and cut reliance on imports

• USPS has rolled out Priority Mail Next Day, a contract-only service offering overnight delivery within 150 miles of select processing centers. Now active in 62 U.S. markets, it targets e-commerce shippers with packages up to 20 lbs, no fuel or residential surcharges, and aggressive pricing, though with no on-time guarantee. Expansion is expected nationwide over time

This newsletter was curated by Shyam Gowtham

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