Trump Urges Apple to Shift iPhone Production to the U.S.📱

Big News 📣

“Build Here, Not in India”: Trump Confronts Apple Over Global Supply Shift

President Trump criticized Apple CEO Tim Cook for expanding manufacturing in India, urging the tech giant to bring production back to the U.S. “I don’t want you building in India,” Trump said, referencing Apple’s $500 billion U.S. investment pledge.

Apple aims to make 25% of global iPhones in India as it diversifies away from China, where most of its devices are assembled. Trump’s comments come amid trade negotiations with India, which recently offered zero tariffs on U.S. imports. Experts say U.S.-made iPhones would be far more expensive, potentially costing $1,500–$3,500.

• Not made in America 🇺🇸 : Currently, no iPhones are assembled in the U.S. Apple’s domestic manufacturing footprint is limited, with only a few operations like its Mac Pro assembly facility in Texas

• Back channel 📱: In March, Apple’s key Indian partners, Foxconn and Tata, shipped a record $2 billion worth of iPhones to the U.S. — a strategic move to get ahead of Trump’s looming tariffs on China-made electronics

China–U.S. Container Bookings Surge After Tariff Pause

Container bookings from China to the U.S. have jumped sharply following the 90-day tariff truce between Washington and Beijing. Vizion data shows a 277% spike in weekly bookings, while Hapag-Lloyd reported a 50% increase compared to the previous month.

With base U.S. tariffs on Chinese goods now reduced from 145% to 30%, importers are rushing to ship ahead of the August deadline. Carriers like Maersk and Hapag-Lloyd expect a short-term surge and are scaling up capacity after weeks of blank sailings. Analysts say the early spike could pull forward the traditional peak season. But they also warn of likely congestion and delays as demand rebounds quickly.

TLDR 🗓️

Trump Slashes De Minimis Tariffs

The U.S. has halved the tariff on low-value parcels from China and Hong Kong, cutting the de minimis rate from 120% to 54% just hours after a 90-day trade pause with Beijing was announced.

The change eases pressure on fast-fashion giants like Shein and Temu, who built their U.S. growth on the now-closed de minimis loophole. A planned hike in the $100 flat fee to $200 was also shelved. Trump called the deal a “total reset,” claiming it opens China to American exports while easing tariffs on both sides.

EU Plans Tariff Response on $107B of U.S. Goods

The European Commission is preparing counter-tariffs on $107 billion worth of U.S. exports if trade talks with Washington fail. The measures target industrial and agricultural goods and come in response to U.S. tariffs on European cars and parts. Brussels has also proposed export limits on steel scrap and chemicals worth $5 billion.

Talks between the U.S. and EU are continuing under a 90-day tariff truce that ends on July 9. The EU argues the new U.S. duties break global trade rules and plans to file a formal complaint with the World Trade Organization. In the meantime, the commission is gathering public feedback on its proposed countermeasures, with a deadline of June 10.

UPS Adds Surcharge Ahead of Possible Canada Post Strike

UPS will begin charging extra for shipments from the U.S. to Canada starting May 18, just days before a potential Canada Post strike. Standard parcels will incur a $0.49 fee per package, while express and economy services will face charges of up to $1.25 per pound. This fee will remain in effect until further notice.

Canada Post workers are currently in contract negotiations with the government, but no agreement has been reached yet. A strike could disrupt deliveries nationwide, leading to increased volume for private carriers like UPS and FedEx. UPS states that the surcharge will help manage demand and maintain service levels. FedEx has also implemented contingency plans to address a potential surge.

Amazon Reunites With FedEx for Large Package Deliveries

Amazon has struck a new multi-year deal with FedEx to help deliver large packages across the U.S., marking a renewed partnership after their 2019 split. FedEx will join USPS and UPS as third-party partners supporting Amazon’s last-mile network.

The deal comes as Amazon shifts more deliveries in-house—over two-thirds now move through its own logistics arm. The move follows UPS’s decision to wind down more than half its Amazon business, citing margin pressure. Amazon said the FedEx deal won’t replace UPS, but adds more flexibility as demand patterns evolve.

U.S. Launches National Security Probe Into Aircraft Imports

The Commerce Department has opened a Section 232 investigation to assess whether imports of commercial aircraft, jet engines, and parts pose a threat to national security. The review will examine whether the U.S. is too reliant on foreign suppliers and whether unfair trade practices or subsidies are harming domestic manufacturers. It could lead to new tariffs or other trade restrictions.

Officials are also looking at risks like price manipulation and supply disruptions. Public comments are open until June 3. The move follows a similar 232 probe into semiconductors launched in April.

China Lifts Some U.S. Export Curbs but Keeps Rare Earth Restrictions

China has temporarily lifted export restrictions on 28 American companies and paused penalties on 17 others following a 90-day trade truce with the U.S. However, it is keeping export bans on seven key rare earth metals, which are critical to U.S. defense and manufacturing.

The rare earth minerals —such as dysprosium, scandium, and yttrium—remain under tight control as part of China’s national security strategy. The Commerce Ministry did not explain why these curbs were excluded from the broader easing. It is worth noting that most U.S. rare earth imports come from China, giving Beijing leverage in trade talks.

Suez Canal Authority Cuts Fees to Regain Lost Traffic

The Suez Canal Authority will reduce transit fees by 15% for large container ships starting May 15, aiming to recover traffic lost during the Red Sea crisis. The discount applies to vessels over 130,000 metric tons and will last for 90 days.

Canal traffic dropped by 50% in 2024 after repeated Houthi attacks on vessels passing through the Red Sea, with only 13,200 ships using the Suez Canal compared to over 26,000 in 2023. The disruption has cost Egypt an estimated $800 million in monthly revenue losses, severely impacting the country's foreign reserves. While the U.S.-brokered ceasefire with Houthi rebels is expected to ease tensions, recovery remains uncertain.

The Suez Canal Authority expects the 15% fee cut will incentivize carriers to return, helping it move closer to Egypt’s $13 billion revenue target for 2025.

Boeing Lands Record $96B Jet Deal with Qatar Airways

In a historic move, Boeing has signed its largest-ever widebody aircraft deal with Qatar Airways for up to 210 planes, including 130 Dreamliners and 30 777-9s, plus options for 50 more. The agreement, signed during President Trump’s visit to Doha, also includes over 400 GE Aerospace engines, marking GE’s biggest engine deal to date.

The White House valued the order at $96 billion, claiming it will support over a million U.S. jobs. Boeing, still recovering from years of losses and safety setbacks, hopes the deal will boost its rebound. The aircraft will be assembled in South Carolina and nearly double Qatar’s fleet.

U.S. Lawmakers Introduce Bill to Curb AI Chip Smuggling

A group of eight U.S. lawmakers introduced a bipartisan bill, the Chip Security Act, that would require AI chipmakers, such as Nvidia, to incorporate technology verifying the location of their chips prior to exporting them. 

"In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Rep. Bill Huizenga, a Michigan Republican who introduced the House bill, said in a statement.

The bill follows the rescinding of a rule by President Donald Trump's administration, which was enacted by his predecessor, President Joe Biden, that aimed to regulate the global flow of advanced AI chips.

Container Rates Spike as Transpacific Capacity Tightens

Drewry’s World Container Index jumped 8% this week, hitting $2,233 per 40-foot container—still 78% below pandemic highs, but 57% above 2019 averages. The sharpest increases came on U.S.-bound lanes: Shanghai–New York soared 19% to $4,350, while Shanghai–Los Angeles rose 16% to $3,136. Rates dipped slightly on European routes, with Shanghai–Rotterdam and Genoa both down 1%.

The surge follows renewed U.S.–China trade flows and looming capacity crunches, signaling more volatility ahead for Transpacific spot rates. Drewry expects further hikes as peak season front-loading picks up.

Tidbits 🍿

• DHL Group has signed a Memorandum of Understanding (MoU) with Boston Dynamics to expand its robotics program, with plans to deploy over 1,000 robotic units across its global operations. The move marks a major step in scaling automation across multiple DHL divisions

• China is rapidly expanding its agricultural supply chain infrastructure in South America to reduce dependence on U.S. crops. The state-owned grain trader Cofco is building its largest export terminal outside China at Brazil’s Port of Santos, increasing its export capacity from 4.5 million to 14 million tons annually

• According to the U.S. Labor Department, consumer prices rose 0.2% in April 2025, as businesses scrambled to adapt to President Trump’s unpredictable tariff swings

• U.S. tariffs could cost the company $3 billion, according to Nissan, but its mitigation strategies—including ramping up local production and supplier collaboration—are expected to reduce that impact by 30%.

This newsletter was curated by Shyam Gowtham

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