Tariffs cost GM $1.1 billion 📉

In a major breakthrough ahead of the looming August 1 tariff deadline, U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba have signed a landmark trade agreement that slashes auto tariffs and unlocks a $550 billion Japanese investment package into the United States.

🚗 Auto Relief: Under the agreement, tariffs on Japanese auto imports will drop from 27.5% to 15%, providing a significant boost to Japan’s auto sector, which accounts for more than a quarter of its exports to the U.S

💰 Big Buy: Japan committed to a $550 billion investment and loan package to help fund U.S.-bound supply chains in sectors like semiconductors and pharmaceuticals. It also pledged to buy 100 Boeing aircraft and increase annual defense spending with American firms from $14 billion to $17 billion

🍚 Rice and Shine: Prime Minister Shigeru Ishiba said Japan will import more rice from the United States, but within the existing tariff-free quota. In 2024, the U.S. accounted for 45% of the total rice imports in Japan

☹️ Unhappy Three: “This hurts U.S. industry and workers,” said AAPC chief Matt Blunt, slamming the Japan trade deal. GM, Ford, and Stellantis say it unfairly favors Japan with lower tariffs

Why does this deal matter? Unlike recent agreements with countries such as Indonesia and the Philippines, Japan is a major U.S. trading partner with extensive economic ties. Japan’s $148 billion in exports to the U.S. last year underscores the strategic weight of this deal

General Motors took a $1.1 billion hit in the second quarter due to tariffs on imported cars and auto parts, resulting in a 21% decline in net income. The company now expects total tariff-related costs to reach between $4 billion and $5 billion by the end of the year.

🌏 Global Footprint: GM built nearly 1 million vehicles in Canada and Mexico in 2024, according to figures from S&P Global Mobility. Additionally, it imported 100,000 cars from South Korea that were sold in the United States

💵 Total Impact: According to the Center for Automotive Research, a blanket 25% tariff on all U.S. trading partners would raise costs for American automakers by $107.7 billion overall. The Big Three—GM, Ford, and Stellantis—would shoulder $41.9 billion of that increase.

💬 Steady Outlook: GM maintained its full-year guidance for adjusted operating income between $10 billion and $12.5 billion—still down from $14.9 billion last year

The U.S. Department of Transportation has announced new enforcement measures against Mexico, accusing it of violating the 2015 U.S.–Mexico Air Transport Agreement. Transportation Secretary Sean P. Duffy said Mexico unfairly seized airport slots from American airlines and forced U.S. cargo carriers out of Mexico City’s main airport.

The department outlined three actions: Mexican airlines must now file all U.S. flight schedules, get prior approval for large charter flights, and face a possible end to antitrust immunity for the Delta–Aeromexico partnership. Officials stated that Mexico’s actions have disrupted passenger and cargo operations, increased costs for U.S. businesses, and harmed competition.

The U.S. Department of Transportation has awarded $8.75 million in grants to 17 small shipyards across 12 states as part of the Small Shipyard Grant Program. Announced by Transportation Secretary Sean P. Duffy, the funding aims to modernize infrastructure, expand training, and support advanced manufacturing and repair capabilities in the maritime sector.

The grants are part of President Trump’s broader push to restore American maritime dominance and counter Chinese shipbuilding influence. The initiative focuses on investing in equipment such as cranes, CNC machines, and welding systems to help small shipyards enhance productivity and support defense needs.

Since 2008, the program has provided over $320 million in grants, supporting more than 100,000 jobs tied to the domestic shipbuilding industry.

China’s exports of rare-earth magnets nearly tripled in June 2025 compared to May, following a mid-May trade truce with the U.S. that led Beijing to ease restrictions on the critical inputs. The rebound saw shipments reach 3.2 million kilograms, up from 1.2 million in May. However, exports are still down 38% year-over-year and well below the 2024 monthly average of 4.8 million kilograms.

Exports to the U.S. dropped 52% in June from a year earlier, an improvement from May’s 93% plunge, but still far from normal. These magnets—vital for EV motors, missiles, and electronics—remain a pressure point in China–U.S. trade tensions. While China eased curbs on finished magnets, export licenses for raw rare earths remain elusive and slow to process.

Cosco Shipping is pushing for veto rights in the consortium acquiring Li Ka-shing’s overseas ports portfolio, which includes 43 terminals worldwide and two key locations near the Panama Canal.

According to Bloomberg, Cosco, China’s state-owned shipping giant, says such authority is necessary to block any decisions that could harm Beijing’s interests.

The acquisition group, which includes BlackRock’s Global Infrastructure Partners and Terminal Investment Ltd., has reportedly agreed to provide Cosco with full operational transparency, although the extent of its control is still under negotiation. The exclusivity period for the deal ends July 27, with final terms expected by September.

KoBold Metals, backed by Jeff Bezos and Bill Gates, has signed a landmark agreement with the Democratic Republic of Congo to acquire and develop the disputed Manono lithium deposit, one of the world’s largest untapped sources of lithium.

The deal marks a major escalation in a legal battle with Australia’s AVZ Minerals, whose rights were revoked by Congo’s government in 2023. The agreement, signed on July 18, positions KoBold as the DRC's preferred partner and commits the U.S. firm to apply for exploration licenses covering 1,600 square kilometers by July 31. Congo will appoint an envoy to expedite the acquisition.

AstraZeneca announced plans to invest $50 billion in the United States by 2030, making it the latest pharmaceutical company to boost domestic manufacturing in response to growing tariff threats. The centerpiece of the investment is a new facility in Virginia to produce the company’s oral GLP-1 weight management drug, part of its broader obesity and metabolic portfolio.

The Virginia plant will be AstraZeneca’s largest global manufacturing investment, incorporating AI and automation to improve efficiency. The company also plans to expand R&D and cell therapy manufacturing across multiple states, including Maryland, Massachusetts, Indiana, California, and Texas, potentially creating tens of thousands of jobs.

India’s electronics exports rose sharply by 47% year-on-year to $12.41 billion in the April–June quarter of FY26, driven by robust demand from key markets, according to data from the Commerce Ministry. The United States accounted for a dominant 60.17% of these exports, followed by the UAE (8.09%), China (3.88%), the Netherlands (2.68%), and Germany (2.09%).

Officials said the data reflects India’s increasing integration into global electronics supply chains and its positioning as a viable alternative manufacturing hub in Asia. The U.S. also remained the top buyer of Indian ready-made garments, with a 34.11% share in Q1, while marine product exports rose nearly 19.5%, again led by American demand.

Truck freight volumes in the U.S. declined for the second consecutive month in June, with the American Trucking Associations’ For-Hire Truck Tonnage Index falling 0.4% from May to 113.3. Compared to June 2024, tonnage was down 0.1%, indicating a slowdown after a strong start to Q2.

ATA Chief Economist Bob Costello attributed the dip to weaker construction activity offsetting gains in retail and factory output. The broader logistics industry also showed mixed signals: the Logistics Managers’ Index rose to 60.7 in June, driven by rising inventories, while the Cass Freight Index recorded a 2.4% year-on-year decline in shipments.

Experts pointed to tariff-related uncertainty as a major factor affecting freight planning, with shippers front-loading cargo ahead of potential new trade measures.

A new report from the Government Accountability Office (GAO) has found that the U.S. Department of Transportation (DOT) has largely neglected the infrastructure needs of the air cargo industry. The GAO concluded that the DOT lacks meaningful engagement with air cargo stakeholders and relies on unreliable data to assess the sector’s challenges, resulting in bottlenecks at major airports and outdated cargo facilities.

The report highlighted longstanding concerns from freight forwarders and airlines, including inadequate truck parking, poor road layouts, and aging warehouses. The Airforwarders Association, which advocated for the study, plans to use the findings to advocate for dedicated federal funding to improve air cargo infrastructure, which it says is often overlooked in favor of passenger-related upgrades.

AMD CEO Lisa Su revealed that chips produced by TSMC’s Arizona facility will cost 5% to 20% more than those made in Taiwan. Speaking at an AI summit in Washington, Su emphasized the importance of diversifying production, saying the added cost is justified by improved supply chain resilience. TSMC’s U.S. plant, which is expected to begin delivering chips to AMD by year-end, reportedly matches Taiwan’s yield levels.

Su also welcomed the Trump administration’s new AI Action Plan, describing it as “quite actionable” and praising efforts to ease regulations while maintaining national security. She called for a balanced export policy that supports allies and maintains U.S. leadership in AI technology.

The U.S. Federal Aviation Administration (FAA) will conduct a full review of Boeing’s supply chain before deciding whether to lift the current cap on 737 MAX production, said FAA Administrator Bryan Bedford. The agency has limited Boeing to 38 jets per month since a January 2024 in-flight incident involving an Alaska Airlines MAX 9.

Although Boeing has not yet formally requested to raise production, Bedford noted the company is making cultural and operational improvements. Still, he emphasized the need to see long-term progress, a healthier workforce, and lower defect rates before easing oversight.

Boeing is also awaiting FAA certification for its MAX 7 and MAX 10 variants. While the agency recently extended Boeing’s authority to perform certain inspections on its behalf, Bedford said it’s still “a long way” from relaxing supervision.