Pause on Tariffs, China Tightens Critical Mineral Supply, TikTok Gets Extension

Big News 📣

Trump Hits Pause on Global Tariffs, Increases for China

President Trump has paused higher tariffs on most countries for 90 days after markets plunged following his sweeping tariff plan. However, China faces even steeper duties—now up to 125%—after it retaliated with 84% tariffs on U.S. goods. The pause helped U.S. markets rebound, with the S&P 500 jumping 9.5%. Trump said the move was to reward countries that didn’t retaliate.

• Trade Shrink 💰: WTO warns that escalating tensions could shrink U.S.-China trade by up to 80%, or $466 billion

• Happy Markets 📉: The Nasdaq jumped 12%—its best in 24 years. The S&P 500 rose 9.5%, its biggest gain since 2008, while the Dow climbed 7.9%, its best since 2020
  

• Tech is Back 💻 : The Magnificent Seven added a record $1.8 trillion in value. Nvidia led with a $440B jump (up 19%), Tesla soared 23%, while Apple and Meta rose 15%

Tech Tariffed: Check out the latest issue of CrossDock Spotlight, where we explain why tariffs for US tech companies

EU Hits Pause on Tariff Retaliation

The European Union has paused its planned 25% retaliatory tariffs on $21 billion worth of U.S. goods for 90 days. This came after Donald Trump suddenly reversed course on his steepest new tariffs, opting for a temporary pause instead. EU Commission President Ursula von der Leyen said the EU wants to give negotiations a chance but warned that the tariffs will kick in if talks fail.

While the EU's planned retaliation is on hold, Trump's earlier tariffs, including 25% duties on steel, aluminum, and cars, still remain. The EU’s response was also strategic: the proposed tariffs mainly targeted goods from Republican-leaning U.S. states

Trump Signs Executive Order to Revive U.S. Shipbuilding

President Donald Trump has signed an executive order aimed at boosting America’s shipbuilding industry and curbing China’s dominance in global shipping. The order proposes steep port fees for fleets with Chinese-built or Chinese-flagged ships, drawing criticism from exporters and port operators.

It also calls for tariffs on Chinese-made cargo equipment and crane parts. A Maritime Security Trust Fund will be created to fund U.S. maritime upgrades. Lawmakers across party lines have backed the move, pledging legislative support. Trump said the U.S. would spend “a lot of money” to rebuild shipyard capacity. China dismissed the move, calling its industry growth a result of innovation and fair competition.

Suggested Reading: Can America Build Great Ships Again?

TLDR 🗓️

EU Approves DSV's Acquisition of DB Schenker

The European Commission has approved Danish logistics company DSV's €14.3 billion ($15.8 billion) acquisition of German rival DB Schenker, a division of Deutsche Bahn. This approval clears a significant regulatory hurdle for the deal, which is set to create the world's largest logistics company. ​

The Commission determined that the acquisition does not pose competition concerns due to the fragmented nature of the logistics market and the presence of numerous alternative service providers. The combined entity will hold only 6% to 7% of the global logistics market, competing with major players such as DHL Logistics and Kuehne + Nagel.

With the EU's approval, the deal now awaits clearance from the U.S. Department of Justice. The acquisition is expected to be completed in the second quarter of 2025. Upon completion, DSV will significantly strengthen its air and sea freight operations, moving more than 4 million TEU of sea freight and around 2.5 million tonnes of airfreight annually.

Walmart Flags Profit Hit as Trump Tariffs Cloud Forecasts

Walmart has warned that newly imposed Trump tariffs could dent its quarterly profits, forcing the retail giant to adjust its operating income outlook. While sales are expected to grow 3–4%, executives say the uncertainty has created pricing pressures and week-to-week volatility.

CFO John David Rainey noted that about a third of Walmart’s goods are imported, with China and Mexico being key sources. The company still reaffirmed its full-year guidance despite widening internal projections. Tariff-related unpredictability, a weaker merchandise mix, and insurance costs also contributed to the cautious tone.

Trump’s Tariff Hike Threatens U.S. Import Surge

U.S. container imports jumped 11% in March, but industry leaders say the boom won’t last. The National Retail Federation expects volumes to fall at least 20% in the second half of 2025 as new tariffs hit. Imports from China rose year-over-year but dropped sharply from February after Trump raised duties to 125%.

According to Reuters, retailers and port officials warn that supply chains are already feeling the strain. The Port of Los Angeles expects volumes to fall 10% or more later this year. Companies like Walmart and Ford, which rely heavily on Chinese goods, are bracing for disruption.

Prada Acquires Versace in $1.36 Billion Deal Amid Luxury Slowdown

Prada has struck a $1.36 billion deal to acquire rival fashion house Versace, aiming to create a stronger Italian luxury group. The move unites two iconic brands under one umbrella as the industry faces softening demand worldwide.

The deal is significantly lower than the $2.15 billion paid by Capri Holdings in 2018. Versace has been posting losses, prompting Prada to offer a “strong platform” for its revival. Prada hopes the acquisition will boost its position against luxury giants like LVMH and Kering.

China Strikes Back at U.S. Tariffs With Rare Earth Export Controls

China has imposed new export restrictions on key rare earth elements, targeting critical minerals used in defense, EVs, and consumer electronics. Seven types of rare earths are now under tighter export control. The move is part of a broader retaliation to President Trump’s sweeping tariffs, escalating tensions between the two nations.

The curbs are expected to affect all countries but are seen as a strategic strike on U.S. supply chains. Companies like Lockheed Martin, Apple, and Tesla rely heavily on Chinese rare earths. U.S. manufacturers are now scrambling for alternative sources in Japan and South Korea. Beijing's grip on rare earth processing remains nearly absolute. Industry analysts say this may be just the opening move in a deeper trade confrontation.

However, the China Nonferrous Metals Industry Association stated that the curbs apply only to entities harming China’s sovereignty and security.

Egg Prices Hit Record High as DOJ Probes Industry Giant Cal-Maine

Egg prices reached an all-time high of $6.23 per dozen in March, up from $5.90 in February, despite a recent dip in wholesale costs. The surge pushed overall grocery inflation higher, with egg prices rising 60% year-over-year.

Wholesale egg prices have since fallen to $3.26, but retail prices remain high. The Department of Justice is investigating Cal-Maine Foods, the nation’s largest egg producer, over potential antitrust violations. The company said it is cooperating with the probe. Volatility is expected to continue, especially around the Easter holiday.

Car Imports Pile Up at U.S. Ports as Trump Tariffs Disrupt Auto Supply Chains

Thousands of imported vehicles are stranded at American ports as carmakers pause shipments amid tariff uncertainty. Brands like Audi and Jaguar Land Rover are minimizing U.S. deliveries, waiting to see if President Trump’s new 25% auto tariffs are softened.

According to Financial Times, some manufacturers are storing vehicles in bonded warehouses to avoid immediate duties. Bremerhaven, a major German car port, expects up to a 50% drop in U.S. vehicle traffic. Logistics firms warn ports are nearing full capacity. Confusion over how the tariffs apply—particularly to individual car parts—is causing further delays and uncertainty. Automakers are holding off on major decisions until there's more clarity on the rules and how long the tariffs will remain in place.

Suggested Reading: American Automobile Industry and Trump’s Tariffs

TikTok gets More Time

​President Donald Trump has granted TikTok an additional 75-day extension to finalize a deal that would transfer its U.S. operations to American ownership, thereby delaying enforcement of a law mandating the app's sale or shutdown due to national security concerns. This extension, announced on April 4, 2025, moves the deadline to June 19, 2025.

The proposed plan involves U.S. investors, including Oracle, Blackstone, and Andreessen Horowitz, assuming majority control of a new American-owned TikTok entity, with ByteDance retaining less than 20%. However, the deal faces complications due to escalating U.S.-China tensions, particularly following Trump's recent 34% tariffs on Chinese imports and Beijing's retaliatory measures.

Amazon Cancels Inventories from China

According to a Bloomberg report, Amazon has canceled several inventory orders from China and other Asian countries after President Trump announced new tariffs on imports. The canceled items include beach chairs, scooters, and air conditioners. Vendors say the cancellations came without warning, leaving them with unsold stock and mounting costs. Some had already completed manufacturing before receiving notice.

China Asks Shein to Not Change Supply Chain

​According to reports, China's Ministry of Commerce has advised fast-fashion retailer Shein and other companies against shifting their supply chains to other countries. This guidance aims to prevent a manufacturing exodus following recent U.S. tariffs. In response, Shein has reportedly halted supplier visits to factories in Vietnam and other Southeast Asian nations. ​

Tidbits 🍿

• Walmart-owned Sam’s Club plans to open 15 stores annually and remodel all 600 U.S. locations, even as tariff uncertainty clouds the retail outlook. CEO Chris Nicholas says value-driven shopping will hold strong, even in tough times

• WeightWatchers — the weight management company that’s been around since 1963 — is preparing to file for bankruptcy in the coming months, aiming to restructure and transfer control to its creditors

• Microsoft is scaling back its data center expansion plans, including halting a $1 billion facility in Ohio. The move comes amid rising costs driven by tariffs and economic uncertainty

• Walmart Inc. has launched a new in-house AI tool, Trend-to-Product, to help its designers and merchants stay ahead of trends

Reading List 📚 :

This week's top book picks from CrossDock 📖:

• Give People Money by Annie Lowrey

• The Path between the Seas by David McCullough

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!