Tariffs on Canada and Mexico, US Holds Gold, Fees for Chinese Ships

Big News 📣

Longshoremen Approve Six-Year Contract

Dockworkers along the U.S. East and Gulf Coasts have overwhelmingly approved a six-year contract, preventing a potential strike that could have disrupted key supply chains and economic stability.

The agreement, negotiated between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance — representing ports and shipping companies—was first reached in January. The Maritime Alliance ratified the deal last month, and on Tuesday, ILA members sealed the decision with an almost unanimous 99% approval vote.

• Reason for strike 🗣️ Dockworkers went on strike in October 2024 over demands for higher wages and job security, particularly concerns about automation replacing union jobs

• Increased wage 💵: The new contract gives dockworkers a 62% pay raise over six years, increasing their top hourly wage from $39 to $63

• Automation woes 🏗️: The new contract lets ports use more modern technology, but they must hire new workers when they do

Tariffs on Canada and Mexico Are Back

President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico starting March 4 and double tariffs on Chinese goods from 10% to 20%. The White House says the move is intended to crack down on fentanyl smuggling and other illicit drug trafficking.

In a Truth Social post, Trump said the tariffs would pressure other countries to strengthen enforcement against drug smuggling. He dismissed concerns that higher import taxes would raise prices for U.S. consumers, calling it a “myth”, despite economic experts warning of potential cost increases.

• Reactions 📣: Mexican President Claudia Sheinbaum said that she hopes to speak with Donald Trump after this week’s Cabinet-level meetings in Washington. Canadian Prime Minister Justin Trudeau said Canada has invested over $1 billion CAD in border security, with government officials in Washington this week to discuss further.

• Tariffs on EU 🇪🇺 : At his first Cabinet meeting, Donald Trump said he would impose 25% tariffs on the European Union, claiming the 27-nation bloc was “created to take advantage of the United States.”

Deep Dive - Tariff Car-nage: Impact of Trump tariffs on the US automobile industry

U.S. Plans Major Fees on Chinese Ships

In a significant escalation of trade tensions, the U.S. government has proposed imposing substantial fees on Chinese-operated and Chinese-built vessels entering American ports. The proposal, announced by the Office of the U.S. Trade Representative (USTR), aims to counter China's dominance in the global shipbuilding industry, which has been bolstered by extensive state subsidies.

Chinese-operated vessels: Each port call by a vessel operated by Chinese interests could incur a fee of up to $1 million

Chinese-built vessels operated by non-Chinese entities: Each U.S. port call for a vessel built in China but operated by non-Chinese interests will incur a fee of up to $1 million, depending on the proportion of Chinese-built ships in that operator's fleet. 

Public consultation: The USTR has opened a public comment period until March 24, inviting feedback from stakeholders before finalizing the measures. This move underscores the administration's commitment to addressing trade imbalances and supporting domestic industries

Apple to Invest $500 Billion in US Operations

Apple has announced a significant commitment to bolster its U.S. operations, pledging to invest over $500 billion in the next four years. This initiative aims to enhance innovation, expand manufacturing capabilities, and create approximately 20,000 new jobs across the country.

✅ In collaboration with partners, Apple plans to open a 250,000-square-foot advanced manufacturing plant in Houston, Texas, by 2026

✅ In addition to the Houston facility, Apple is doubling its Advanced Manufacturing Fund to $10 billion, supporting domestic suppliers and fostering innovation within the U.S.

✅ The plans were announced after discussions between Apple CEO Tim Cook and President Donald Trump, as the company moves to shift production from Mexico to the U.S. and strengthen its supply chain against tariff risks

For more details, check out Apple’s press release

TLDR 🗓️

Egg Prices to Soar 41% in 2025

The U.S. Department of Agriculture (USDA) has projected a 41.1% increase in egg prices for 2025, revising its earlier forecast of a 20% rise. In January 2025 alone, approximately 18.8 million commercial egg layers were affected, leading to significant supply shortages.

In response to the crisis, the USDA has announced a $1 billion investment to combat avian flu and stabilize egg prices. The comprehensive strategy includes $500 million for biosecurity measures, $400 million for financial relief for affected farmers, and $100 million for vaccine research.

Despite these efforts, consumers have already felt the impact, with retail egg prices increasing by 13.8% in January 2025, following an 8.4% rise in December 2024. Overall, egg prices in January were 53% higher than the same month the previous year.

Agriculture Secretary Brooke Rollins stated that the U.S. government is exploring the option of increasing egg imports to combat rising prices.

FDA Declares End to Ozempic and Wegovy Shortage

The U.S. Food and Drug Administration (FDA) has officially declared an end to the shortage of Ozempic and Wegovy, two popular medications used for diabetes management and weight loss. This announcement follows Novo Nordisk's confirmation that it now has sufficient supply to meet the U.S. demand for these drugs.

Despite the FDA's declaration, some compounding pharmacies and associated organizations have filed lawsuits challenging the removal of these drugs from the shortage list, arguing that the decision was premature and could negatively affect patients relying on more affordable compounded versions.

Lowe’s Beats Wall Street Expectations, Signals Sales Recovery Ahead

✅ Lowe’s reported an adjusted earnings per share of $1.93, exceeding Wall Street’s expected $1.84.

✅ The company posted $18.55 billion in revenue, slightly above the projected $18.29 billion.

✅ Lowe’s expects $83.5 billion to $84.5 billion in full-year sales, potentially surpassing last year’s $83.67 billion.

✅ Fourth-quarter net income rose to $1.13 billion, up from $1.02 billion a year ago.

✅ Sales increased 0.2%, breaking an eight-quarter decline streak and outperforming Wall Street’s expected 1.8% drop.

✅ Online sales, high demand from home professionals, and post-hurricane rebuilding efforts fueled growth.

CEO Shake-ups: Lucid and Unilever Change Leaders

Two major players in very different industries—Lucid Group and Unilever—are making big leadership changes as they aim for a stronger future.

At Lucid, CEO Peter Rawlinson is stepping down as the EV startup gears up for an ambitious production boost. The company plans to more than double its output in 2025, targeting 20,000 vehicles, up from 9,029 in 2024. Rawlinson, who has led the company since 2019, will transition to a strategic advisory role while COO Marc Winterhoff steps in as interim CEO to oversee the company’s growth.

Meanwhile, at Unilever, CEO Hein Schumacher is also making an early exit, stepping down after less than two years at the consumer goods giant. Schumacher had spearheaded a strategic overhaul focused on streamlining Unilever’s portfolio and cutting costs, but the board is looking for a faster turnaround. CFO Fernando Fernandez will take over as CEO, with a mandate to accelerate the Growth Action Plan and drive stronger performance across Unilever’s global brands.

24-hour economic blackout protest planned for Feb. 28

The People’s Union USA is organizing a 24-hour economic blackout on February 28, urging Americans to halt all purchases in protest against rising prices, corporate greed, and DEI rollbacks. Another broad-based boycott is planned for March 28, alongside targeted boycotts of Amazon (including Whole Foods), Walmart, Nestlé, and General Mills.

Organizers believe collective spending restraint can pressure corporations and policymakers. The movement reflects growing frustration over inflation and economic inequality. With consumer activism gaining momentum, corporate strategies may face increasing scrutiny.

Consumer Sentiment Declines Amid Inflation and Policy Concern

In February 2025, the University of Michigan's Consumer Sentiment Index experienced a significant decline, dropping to 64.7 from January's 71.7, marking the lowest level since November 2023. This 9% decrease reflects growing consumer concerns about inflation and economic policies.

The survey highlighted that year-ahead inflation expectations surged to 4.3%, the highest since November 2023, up from 3.3% in January. Long-term inflation expectations over the next five to ten years also rose to 3.5%, the highest since 1995.

RXO Q1 2025 Truckload Market Forecast Key Takeaways

• Lucid Spot & Contract Rate Trends: The truckload market is entering an inflationary phase, with spot rates rising 11.6% YoY in Q4 2024, while contract rates remain slightly deflationary at -1.5 % YoY

• Market Tightening in Q1 2025: Carrier exits, holiday shipping spikes, and post-hurricane disruptions caused increased load-to-truck ratios and higher tender rejections, signaling tighter capacity

• Macroeconomic Factors at Play: Inflation remains a key concern, with core CPI rising 3.3% YoY, and interest rates are expected to remain steady as the Federal Reserve evaluates economic stability

• Freight Market Recovery Still Slow: Consumer spending and industrial production remain stable but muted, delaying a full truckload market recovery. However, private fleets continue absorbing for-hire freight, suppressing demand

• Carrier Market Struggles: Truck orders declined 12% YoY, employment in long-haul trucking saw 11 consecutive months of YoY declines, and 3,000+ carrier authorities exited the market in Q4 2024

• Q1 2025 Truckload Market Forecast: The spot market is expected to remain inflationary, but not at extreme levels like 2020-2021, unless major demand spikes, rapid carrier exits, or fuel price surges occur

• Procurement Strategy for Shippers: Shippers are advised to avoid aggressive rate-cutting, maintain relationships with core freight providers, and monitor KPIs closely as the market tightens through 2025

U.S. Traders Hoard Gold Ahead of Trump’s Tariffs

America’s increasing demand for gold is draining bullion reserves from other countries, as traders stockpile ahead of President Trump’s impending tariffs on Canada and Mexico, according to CNBC reports.

According to data from the World Gold Council, over 600 tons—nearly 20 million ounces—of gold have been moved into New York vaults since December.

CNBC reported that the threat of tariffs has prompted U.S. banks, investors, and traders to shift gold to the Commodities Exchange Centre and other New York vaults rather than its usual storage location in London.

Lineage Reports Loss in Q4 2024

Lineage, Inc., the world's largest temperature-controlled warehouse REIT, reported its fourth-quarter 2024 financial results. The company achieved a slight revenue increase to $1.3 billion and a 9.8% rise in adjusted EBITDA to $335 million. Despite these gains, Lineage faced a net loss of $80 million for the quarter. Looking ahead, the company anticipates an adjusted EBITDA between $1.35 billion and $1.40 billion for 2025.

Joann Fabrics is Closing all 800 Stores in the US

Joann Fabrics, a prominent arts and crafts retailer, is closing all 800 of its U.S. stores after 82 years in business. This decision follows the company's second Chapter 11 bankruptcy filing in January 2025, after which it failed to find a buyer to keep the stores operational.

The closures will result in the loss of approximately 19,000 jobs, including 15,600 part-time positions. This development reflects broader challenges in the retail industry, with other chains like Party City and Big Lots also facing significant closures.

Tidbits 🍿

• Eli Lilly plans to invest $27 billion in building four new manufacturing plants across the U.S., expecting to create 3,000 high-skilled jobs and provide employment for 10,000 construction workers

• Starbucks is laying off 1,100 corporate employees, approximately 7% of its non-store workforce, as part of CEO Brian Niccol's plan to streamline operations and enhance efficiency

• Amazon unveiled Alexa+, its next-gen AI-powered digital assistant, at the Devices and Services event in New York on February 26. The upgraded Alexa features natural language processing, personalized interactions, and enhanced agentic abilities.

• YouTube creator MrBeast is reportedly in talks to raise funds for a holding company to manage his businesses, including his snack brand, Lunchly

• Walmart has introduced a new API for Walmart Connect, enabling ad tech platforms to develop and manage tools for display ad campaigns

• Turkey’s Egg Producers Central Union announced a record 420 million eggs will be exported to the U.S. this year

Reading List 📚 :

📖 Here are the books the CrossDock team is reading right now:

• Arriving Today: From Factory to Front Door by Christopher Mims

• Chip War by Chris Miller

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!