Tariffs Threaten Trade, De Minimis Exemption Ends, Canada Strikes Back

Welcome to CrossDock’s Weekly Dispatch,

We’re back with the key headlines shaping supply chains, retail, logistics, and e-commerce this week. From President Trump’s retaliatory tariffs to the suspension of de minimis exemption, here’s a quick overview of last week’s biggest developments.

Big News 📣

Trump’s “Liberation Day” Tariffs Jolt Global Trade

In a sweeping move that sent shockwaves across the global economy, President Donald Trump declared a U.S. economic emergency and imposed a minimum 10% tariff on all imports, with significantly higher rates targeting 60 countries. China faces the steepest tariff rate at 54%, while key partners like the EU, Canada, and India have also been hit.

President Donald Trump’s new tariff policy is likely to push U.S. import duties to their highest levels in over a century. Trump’s new tariff plan will roll out in two stages. Starting April 5, all imported goods will face a universal 10% tariff. Then, from April 9, select countries will be hit with higher rates—what Trump calls “reciprocal tariffs”—as retaliation for the tariffs those nations have placed on U.S. exports.

• Expert Opinion 🗣️: Economists estimate the move could cost American households $5,000 annually and trigger a global recession, with JPMorgan calling it a major macroeconomic shock

• Market Nosedive 📉: After the announcement, all three major U.S. stock markets had their worst day since June 2020. The Nasdaq dropped 6%, the S&P 500 fell 4.8%, and the Dow slid 3.9%. Apple and Nvidia together lost $470 billion in value by midday
  

• Global reaction 🌍 : China condemned the tariffs as “unilateral bullying” and imposed 34% retaliatory tariffs on all US imports. The European Union called the Trump tariffs a “major blow” to the world economy and began preparing retaliatory steps

Canada Strikes Back with New Tariffs After U.S. Trade Move

Prime Minister Mark Carney has announced tough countermeasures in response to new U.S. tariffs on Canadian goods, including a 25% tariff on Canadian automobiles. Canada will now impose its own 25% tariffs on U.S. vehicles that don’t meet USMCA rules and on non-Canadian parts in American cars.

Carney said the goal is to protect Canadian jobs, especially in the auto industry, and that all money raised from the tariffs will go toward supporting Canadian workers. The government is also offering tax relief, EI support, and business funding to help companies hit by the trade war.

Here’s the link to the full statement by Canadian PM Mark Carney

Trump Ends De Minimis Exemption for China, Citing Opioid Crisis

Starting May 2, 2025, the U.S. will eliminate the duty-free de minimis exemption for low-value imports (under $800) from China and Hong Kong, following a new Executive Order signed by President Trump. Goods sent outside the international postal network will now face all applicable duties, while postal shipments will be charged either 30% of their value or $25 per item, increasing to $50 after June 1.

The move is part of the administration’s effort to crack down on illicit substances, particularly fentanyl, that officials say are smuggled into the U.S. via low-cost packages. Carriers must now report shipment details, post international bonds, and remit duties to U.S. Customs and Border Protection (CBP).

Popular platforms like Shein and Temu, which rely on the exemption to ship goods cheaply from Asia to the US, are expected to be hit hard. The exemption is also likely to be removed for other countries once US Customs has systems in place to efficiently collect duties. Exceptions will remain only for personal travel and gifts.

TLDR 🗓️

NRF Expects US Retail Sales to Grow Up to 3.7% in 2025

The National Retail Federation (NRF) projects U.S. retail sales to grow between 2.7% and 3.7% in 2025, reaching $5.42–$5.48 trillion, slightly above 2024’s $5.29 trillion.

Online and non-store sales are expected to rise by 7% to 9%, potentially hitting $1.6 trillion. While consumer spending remains solid due to low unemployment and steady wage growth, the NRF warns of slower GDP growth and policy uncertainty, including tariff concerns, that may weigh on confidence.

Despite February’s dip in retail spending, NRF says the fundamentals remain strong and retailers will stay focused on meeting customer needs.

China Reviews U.S.-Backed Panama Ports Deal

A $23 billion deal to transfer control of two Panama Canal ports from Hong Kong’s CK Hutchison to a U.S.-led group backed by BlackRock is likely to miss its April 2 deadline, with China's antitrust regulator stepping in for review.

The move follows President Trump’s call to "take back" control of the canal, sparking pushback from Beijing. China’s regulators say the deal could impact fair competition and public interest. While not expected to be blocked outright, Beijing’s involvement may delay or reshape the deal, especially as it examines BlackRock’s operations in China.

US Manufacturing Contracts Again

U.S. manufacturing slipped back into contraction in March, with the ISM PMI falling to 49.0, reflecting the sector's first decline after a two-month rebound.

The sharp drop is attributed to rising uncertainty over President Trump's sweeping tariff policies. Input costs surged, with the prices-paid index hitting 69.4 — the highest since June 2022 — fueling concerns about persistent inflation. New factory orders fell to a near two-year low, while employment in the sector also declined. Economists now warn the tariffs may derail recovery and push the U.S. closer to a recession.

Trump's Tariffs Shatter Southeast Asia’s Status as 'China Alternatives ‘

President Trump’s sweeping reciprocal tariffs have upended Southeast Asia’s rise as a low-cost manufacturing base for U.S. companies.

Vietnam and Cambodia were hit hardest, facing 46% and 49% tariffs, respectively, while Thailand (36%) and Indonesia (32%) also faced steep duties. This has jolted global supply chains that had shifted from China to the region in recent years. Vietnam, once dubbed the "new China," now risks losing major U.S. clients like Nike, which makes 50% of its shoes there.

Business leaders and regional governments are scrambling for clarity and mitigation. According to experts, the era of “China-plus-one” sourcing may be entering a turbulent new phase.

Shoppers Brace for Higher Prices on Essentials

The Trump administration’s sweeping new tariffs are expected to raise prices on everyday staples like bananas, coffee, toilet paper, and spices, according to the Consumer Brands Association (CBA), which represents companies like Procter & Gamble and Coca-Cola.

The CBA warned that tariffs on key imported inputs — like palm oil, vanilla, and wood pulp — could drive up production costs for products with no viable domestic alternatives.

Lineage Expands Pacific Northwest Footprint with Bellingham Cold Storage Buy

Lineage, Inc., the world’s largest temperature-controlled warehouse REIT, has acquired three facilities from Bellingham Cold Storage (BCS) in Washington state. The deal adds roughly 24 million cubic feet of cold storage capacity and strengthens Lineage’s presence at the Port of Bellingham, a key hub for seafood and agriculture. “This strategic acquisition positions us to better serve customers in the Pacific Northwest and beyond,” said Brian Beattie, President of North America West at Lineage.

US May Launch Tariff Check on Critical Minerals

The US government is thinking about starting a new tariff check on key minerals it buys from other countries, according to Bloomberg. A White House official said it could be similar to the copper review done earlier, but no final decision has been made yet.

These critical minerals were left out of Trump’s latest tariffs because the government may use trade rules to take action later. The US depends fully on imports for many of these materials, which are used in batteries, electronics, and defense. A new probe could cause more delays and raise costs in supply chains.

Recommended Reading: Who’s Winning the Global Critical Minerals Race

Amazon Joins Bidding War for TikTok

Amazon has made a surprise last-minute bid to acquire TikTok ahead of the U.S. government's April 5 deadline for the app to sever ties with Chinese parent ByteDance or face a ban.

However, according to The New York Times, dealmakers aren’t viewing Amazon’s offer as a serious contender. President Trump is expected to meet with officials this week to finalize the app’s future. Other bids in play include an Oracle-led consortium and a potential capital injection from Blackstone via ByteDance’s current U.S. investors.

Trump Slaps 25% Tariff on Imported Beer and Aluminum Cans

The Trump administration has imposed a 25% tariff on all imported beer and empty aluminum cans, set to take effect on April 4. The new duties apply to beer made from malt but do not specify tariffs for beer in glass containers. Beer imports to the U.S. exceeded $7.5 billion in 2024, with Mexico alone accounting for $6.3 billion. Industry experts warn the tariffs will raise prices and disrupt beverage supply chains.

U.S. Uranium Output Surges to Six-Year High on Strong Prices

U.S. uranium production has bounced back in a big way, hitting its highest level since 2018 thanks to a stretch of higher market prices. According to the U.S. Energy Information Administration (EIA), total output in 2024 reached nearly 677,000 pounds of uranium concentrate, over 13 times more than the previous year.

Most of this came from in-situ recovery operations in Wyoming and Texas, plus renewed activity at White Mesa Mill in Utah. In fact, production in just the last quarter of 2024 was higher than the total for each of the previous five years. The EIA’s full report is expected in May.

Amazon Resumes Drone Deliveries After Safety Pause in Arizona and Texas

Amazon has restarted drone deliveries in Tolleson, Arizona, and College Station, Texas, after a two-month pause prompted by altitude sensor concerns with its MK30 drones. The company said the pause followed flight data findings — especially from dust-prone areas — though no safety incidents occurred during customer deliveries.

A Bloomberg report earlier highlighted multiple crashes at a testing site in Oregon, but Amazon maintains these were unrelated. With FAA approval secured after a software update in March, Amazon’s Prime Air service aims to eventually deliver 500 million packages annually by drone, despite currently remaining in early test stages.

Tidbits 🍿

• DHL has announced its plans to acquire U.S.-based CryoPDP to expand its pharmaceutical logistics footprint

• ​Macy's has announced that Chief Operating and Financial Officer Adrian Mitchell will depart on June 21. Thomas J. Edwards, currently serving as CFO and COO at Capri Holdings, will succeed him effective June 22

• Amazon has launched a new AI-powered feature called Buy for Me, allowing users to purchase items from other brand websites directly within the Amazon app. The tool is currently in beta for select U.S. users on iOS and Android

• Casual dining chain Hooters filed for Chapter 11 bankruptcy. Under its restructuring plan, two franchisees will acquire select locations to keep some restaurants running.

Reading List 📚 :

This week's top book picks from CrossDock 📖:

• The World Is Flat by Thomas L. Friedman

• The Fish That Ate the Whale by Rich Cohen

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!