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President Trump Increases Tariffs on Imported Steel & Aluminum to 50%

President Trump has doubled U.S. tariffs on steel and aluminum imports to 50%, escalating a protectionist push aimed at reviving domestic production. The new duties, effective as of Wednesday, mark the second hike since March.

Canada, Mexico, Brazil, and South Korea are among the hardest-hit countries, although the UK was granted an exemption, retaining the prior 25% rate due to ongoing trade talks. The administration argues the move is vital to national security and industrial independence. The U.S. steel industry employs fewer than 150,000 workers, while over 6 million jobs depend on metal-using industries.

Analysts say the economic toll could be steep. A prior analysis found Trump's first-term metal tariffs created just 1,000 U.S. steel jobs, but cost 75,000 jobs across other industries.

Here are items that could cost more because of the tariffs, according to a CBS report :

🚗 Cars: Estimates suggest a $400 to $3,000 increase per vehicle, depending on the model and steel content

🏠 Homes: Tariff-driven price hikes on fasteners, nails, and materials could add $10,900 to the cost of a new home

🥫 Canned Goods & Drinks: Can prices may rise, and companies like Coca-Cola are eyeing a shift to plastic bottles

GlobalFoundries to Invest $16B in U.S. Chip Manufacturing Push

GlobalFoundries is set to invest $16 billion to expand its semiconductor manufacturing facilities in New York and Vermont, with backing from major partners including Apple, AMD, and SpaceX. The move supports the broader reshoring effort aimed at boosting domestic chip production and reducing U.S. reliance on overseas suppliers.

The expansion includes scaling up production for AI, EV, cloud computing, and telecom chips, alongside a new packaging center and $3 billion for R&D. The company’s New York site is producing silicon photonics chips, while its Vermont plant is focused on gallium nitride-based power chips.

U.S. Commerce Secretary Howard Lutnick called the investment a “milestone in the return of American semiconductor manufacturing.”

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Cargo Ship Carrying 3,000 Vehicles Abandoned After Fire Near Alaska

A cargo ship carrying nearly 3,000 vehicles — including 800 electric cars — was abandoned in the Pacific after a fire broke out onboard, forcing all 22 crew members to evacuate. The Liberia-flagged Morning Midas, operated by Zodiac Maritime, was en route from Yantai, China, to Lazaro Cardenas, Mexico, when the blaze was spotted on a deck loaded with EVs, about 300 miles southwest of Adak, Alaska.

U.S. Coast Guard units and three nearby vessels are assisting in the response, while salvage efforts are underway. The incident echoes a similar 2022 disaster, when a fire sank a ship carrying 4,000 luxury cars off the Azores.

U.S. Trade Deficit Shrinks as Imports Drop Record 16%

The U.S. trade deficit narrowed sharply in April, falling 55.5% to $61.6 billion—its lowest level since September 2023—as imports plunged by a record 16.3%. The reversal comes after companies front-loaded shipments in Q1 to avoid upcoming tariffs, a move that had earlier ballooned the deficit.

Goods imports fell nearly 20% to $277.9 billion, driven by sharp drops in pharmaceuticals from Ireland, consumer electronics, and industrial materials. Auto imports also declined by $8.3 billion. Meanwhile, exports rose 3% to a record $289.4 billion, driven by higher shipments of crude oil, gold, and capital goods such as computers.

U.S. Aluminium Premiums Hit Record High After Tariff Hike

Aluminium buyers in the U.S. are now paying the highest physical market premiums on record, after President Trump doubled tariffs on aluminium imports to 50% this week. The U.S. Midwest duty-paid premium surged to 60 cents per pound—or $1,323 per metric ton—marking a nearly 190% increase since Trump’s re-election in November.

The spike reflects rising costs for consumers, who pay the global LME benchmark plus regional premiums covering freight, taxes, and now sharply higher duties. The U.S. heavily relies on imported aluminium, with Canada supplying the bulk of volumes.

Analysts warn the price shock could ripple across sectors reliant on the lightweight metal, especially construction, packaging, and automotive.

U.S. Extends Tariff Exclusions on Chinese Imports Till August 2025

The U.S. Trade Representative has extended tariff exclusions on 178 Chinese import categories through August 31, 2025. These include products previously exempted under Section 301 tariffs, covering general goods and solar manufacturing equipment.

The move ensures continued relief for importers amid ongoing reviews of China’s trade practices. The updated exclusions took effect June 1, and U.S. Customs will provide implementation guidance. The exclusions apply to specific products under defined HTS codes and remain subject to strict classification criteria.

The extensions follow public feedback and interagency recommendations. USTR may consider further changes or extensions later this year.

Panama Canal Sees Record Surge in Container Ship Traffic

The Panama Canal recorded over 1,200 container ship crossings between January and May 2025, marking a 10.2% increase from the same period last year and setting a new all-time record, according to Alphaliner.

The growth is driven by a sharp rise in Neo Sub-Panamax vessels—ships with a capacity between 7,500 and 10,000 TEUs—which now make up more than a quarter of total transits. This segment saw a 30.2% year-over-year increase.

In contrast, according to reports, traffic through the Suez Canal has dropped. Ships over 4,000 TEUs are now rare, and Sub-Panamax transits fell below 100 in May 2025, the lowest monthly figure since July 2024.

Tariffs and Trade Tensions Cloud 2025 Air Cargo Outlook

The International Air Transport Association (IATA) has revised its 2025 air cargo forecast downward, citing escalating trade tensions and policy shifts. Projected cargo volumes have been adjusted to 69 million tonnes, a 4.8% decrease from earlier estimates, with revenues expected to decline by 4.7% to $142 billion.

IATA notes that air cargo demand grew by 5.8% in April 2025, driven by factors such as lower jet fuel prices and front-loading of shipments ahead of tariff implementations. However, the association warns that ongoing trade disputes and economic uncertainties may continue to exert pressure on the air cargo industry throughout the year.

U.S. Manufacturing Contracts for Third Straight Month in May

U.S. manufacturing activity declined again in May, with the ISM index slipping to 48.5 from 48.7, marking the third consecutive month in contraction territory. Imports dropped sharply to 39.9, the lowest level since 2009, as firms scaled back on overseas sourcing.

Exports also weakened, falling to 50.6, a five-year low. Inventories declined by 2.9 points to 45.3, the steepest drop in four months. New orders fell for the fourth straight month, down 3.7 points to 45.4.

Meanwhile, supplier delivery times rose to 52.4, the highest since June 2022, pointing to lengthening lead times. The report highlights the continued challenges faced by manufacturers in inventory planning, cost control, and managing supply chain flows.

Toyota to Take Key Supplier Private in $26 Billion Deal

Toyota will take Toyota Industries private in a ¥3.7 trillion ($26 billion) deal, marking a major shift within Japan’s largest industrial group. The move is led by Toyota Fudosan, a private real estate firm chaired by Toyota Chairman Akio Toyoda.

Toyota Industries—maker of forklifts, engines, and EV components—was founded in 1926 by Sakichi Toyoda and is the original company behind Toyota Motor. While the buyout had been anticipated, the offer price of ¥16,300 per share came in below the stock’s recent closing price of ¥18,400, and far short of earlier estimates that valued the deal around $42 billion.

Toyota, which owns approximately 24% of Toyota Industries, announced that it would also repurchase shares held by the company.

DHL Express Canada Faces Potential Strike as Contract Talks Stall

More than 2,000 DHL Express Canada workers could go on strike as early as Sunday, following months of stalled contract negotiations with Unifor. The union, which represents warehouse staff, drivers, and clerical workers across seven provinces, voted 97% in favor of a strike after their labor agreement expired last December.

Unifor accuses DHL of refusing to engage in monetary discussions and reducing pay for some owner-operators by shifting full-time roles to part-time. DHL states that it is working towards a fair and sustainable deal and has contingency plans in place in the event of a strike.

The potential disruption adds pressure to Canada’s delivery network, already strained by labor actions at Canada Post. DHL says it has not seen a volume surge from those diversions but is prepared to manage any operational impacts.

Tidbits 🍿

• The FAA is not lifting the production cap on Boeing’s 737 MAX jets, which was implemented after the January 2024 Alaska Airlines mid-air door plug incident.
  Boeing remains limited to producing 38 jets per month, despite the company's intention to increase output to 42, as safety and quality concerns persist

• San Francisco-based LuminX has raised $5.5 million to deploy AI-powered Vision Language Models that interpret real-time visual data from docks, conveyors, and forklifts inside warehouses

• Descartes is cutting 7% of its workforce—about 200 employees—as part of a cost-reduction plan aimed at saving $15 million annually, citing global trade uncertainty and slower customer reactions to tariffs and sanctions.

This newsletter was curated by Shyam Gowtham

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