Trump to Impose 50% Tariff on EU Imports 🇺🇸🇪🇺

The transatlantic trade standoff just hit a new high. President Donald Trump announced plans to impose a 50% tariff on all European Union imports starting June 1, citing stalled negotiations and accusing the bloc of “monetary manipulations, VAT taxes, and unfair lawsuits against American companies.” The announcement, made on Truth Social, triggered an immediate market reaction—European stocks sank, with the Stoxx 600 falling 1.7%, and S&P 500 futures dropping 1.5% before U.S. markets opened.

Federal prosecutors have charged 13 individuals linked to an Armenian organized crime ring with stealing over $83 million in goods bound for Amazon warehouses.

The group allegedly posed as legitimate trucking carriers, using Amazon Relay to obtain freight routes, then rerouting and siphoning off products—ranging from smart TVs to shampoo—for resale or personal use. The scheme, active since at least 2021, operated under fake companies.

The Department of Justice uncovered photos and videos of warehouse stashes during its probe, backed by Amazon’s internal security team. Amazon, which faces mounting cargo theft threats, said it has “zero tolerance” for organized retail crime and has referred thousands of cases to law enforcement. Several defendants appeared in court this week, as the case highlights growing threats to U.S. logistics networks.

Japan’s exports to the U.S. fell 1.8% in April—the first decline this year—as the country struggles under a flurry of U.S. tariffs. Automobiles, Japan’s top export to the U.S., took a direct hit, with transport equipment shipments down 4.1% year-over-year. The 25% levy on Japanese autos, steel, and aluminum, alongside a 10% baseline tariff, has narrowed Japan’s trade surplus with the U.S. to ¥780.6B ($5.4B).

The fallout is already visible in Japan’s economy. GDP contracted an annualized 0.7% in Q1, dragged down by slowing exports and weak consumer spending. Economists now expect further drag in Q2, with trade uncertainty delaying potential rate hikes.

Canada Post is on the verge of a nationwide shutdown as over 55,000 postal workers prepare to walk off the job this Friday, citing stalled contract negotiations and deepening financial woes. The Canadian Union of Postal Workers (CUPW) issued a 72-hour strike notice after talks broke down over job security, working conditions, and potential benefit cuts.

The strike threatens to halt delivery of more than two billion letters and 300 million parcels annually, impacting families, small businesses, and charities nationwide. While live animals and social assistance cheques will be exempt, most mail services will stop.

The labor unrest comes as Canada Post grapples with a financial freefall. A recent report called the Crown corporation “effectively insolvent,” with over CAD 3 billion in losses since 2018. Commissioner William Kaplan has recommended sweeping reforms, including ending daily letter delivery and allowing rural post office closures, recommendations that the union rejects.

The U.S. Treasury will stop circulating new pennies by early 2026, citing production costs that now approach four cents per coin. The final order of penny blanks has been placed, and the Mint will halt production once those run out. Businesses will be expected to round cash transactions to the nearest five cents, though digital payments will still reflect exact totals.

According to Treasury estimates, the move could save taxpayers $56 million annually. Last year, penny production alone cost the government over $85 million in losses. Nearly 60% of U.S. coins—worth up to $14 billion—sit idle in jars and drawers. The decision follows similar steps by Canada, Australia, and New Zealand and marks the end of one of America’s oldest coins, first minted in 1792.

French shipping giant CMA CGM will reorganize its global fleet to avoid new U.S. port fees targeting Chinese-built vessels, which will take effect in October 2025. CFO Ramon Fernandez confirmed the group has sufficient ship capacity — less than half of its 670-ship fleet is China-made — to adapt without incurring the steep levies.

The fees, part of Trump’s broader push to curb China’s dominance in global shipbuilding, have been softened slightly after industry pushback but remain a key operational challenge. Fernandez said the firm is seeing a rebound in bookings after a dramatic drop in China–U.S. volumes following April’s tariff escalation. The Trump administration previously praised the company’s $20 billion U.S. investment plan.

At a USTR hearing in Washington, port officials warned that a proposed 100% tariff on Chinese-made ship-to-shore cranes could cost U.S. ports an extra $6.7 billion over the next decade. Cary Davis, CEO of the American Association of Port Authorities (AAPA), testified that public ports rely heavily on cranes from Shanghai-based ZPMC, which supplies 80% of U.S. port cranes. Port Houston alone faces a $302 million increase on eight cranes already under contract.

The tariff, an expansion of the 25% duty imposed in 2024, has drawn sharp criticism for risking vital infrastructure projects without a U.S. crane manufacturing base to fall back on. Davis urged USTR Ambassador Jamieson Greer to delay or exempt existing contracts, and called for tax incentives to spur domestic production first. ZPMC denied any national security concerns, warning the tariffs would harm, not help, U.S. supply chains.

Even with a sharp jump in China-to-U.S. shipping bookings—up 157% in mid-May after a temporary rollback in tariffs—Port of Los Angeles executive director Gene Seroka is urging caution. “You won’t see a deluge of freight,” Seroka said, noting the expected increase will be modest and short-lived.

While April volumes were strong, Seroka warned that the 90-day tariff truce isn’t enough to restore long-term confidence. He expects a more “muted” peak season, with fewer product choices on store shelves and higher prices for consumers.

Nearby, the Port of Long Beach is also bracing for a 10% drop in imports this month. Shipping lines are adjusting their schedules cautiously: ZIM reinstated its Central China–L.A. route, while Ocean Network Express and others are fast-tracking new services in June. However, even with these actions, logistics leaders claim that uncertainty regarding tariffs and unstable consumer demand means the West Coast ports won’t recover overnight.

Trucking volumes in the U.S. declined for a second straight month in April, with the American Trucking Associations’ For-Hire Truck Tonnage Index falling 0.3%. This follows a 1.5% drop in March, erasing much of the 2.8% gain seen in February. ATA Chief Economist Bob Costello cited ongoing uncertainty from tariffs and broader economic softness as key headwinds.

The seasonally adjusted index dipped to 113.0, its lowest since early 2024, while year-over-year growth was nearly flat at just 0.1%—the smallest annual gain in four months. With trucks moving nearly 73% of all domestic freight, the slowdown signals a freight market struggling to find its footing despite earlier hopes of a 2025 rebound.

Nippon Steel has boosted its U.S. investment pledge to $11 billion by 2028—up from $2.7 billion—as it makes a last-ditch bid to secure approval for its $14.9 billion acquisition of U.S. Steel. The Japanese giant also promised to create tens of thousands of American jobs and build a new $1 billion steel mill, with another $3 billion earmarked for post-2028 upgrades.

The deal, politically fraught and fiercely opposed by the United Steelworkers union, is currently under national security review by the Committee on Foreign Investment in the United States (CFIUS). The panel is expected to deliver its recommendation soon, with President Trump facing a June 5 deadline to make a final decision.

The U.S. Commerce Department has issued a preliminary ruling that Chinese producers of key EV battery components, like graphite and silicon, have been unfairly subsidized, with benefits reaching up to 721%, according to Reuters.

The decision sets the stage for new anti-subsidy duties targeting imports of active anode material, which powers much of the EV industry.

The probe, separate from President Trump's sweeping tariffs, stems from complaints by U.S. graphite makers who say China’s state-backed pricing is distorting the market. If finalized, the tariffs could raise costs for U.S. battery manufacturers already bracing for a Republican tax plan that would eliminate EV credits.

This newsletter was curated by Shyam Gowtham

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