Good morning.

The U.S. is taking another step to pull critical manufacturing away from China.

Washington and the Philippines are planning a new 4,000-acre industrial hub focused on semiconductors, rare earths, batteries, and advanced manufacturing. The site will sit inside the Luzon Economic Corridor and is expected to become a major base for supply chains tied to critical minerals and chipmaking.

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The U.S. has fully implemented a blockade targeting Iranian ports and Iran-linked shipping routes around the Strait of Hormuz. American forces began enforcing the blockade on Monday, using warships, aircraft, and surveillance systems to stop vessels tied to Iranian exports from moving through the region.

What’s Happening? The U.S. says the blockade is aimed at cutting off Iran’s oil exports and increasing economic pressure on Tehran. Washington wants to force Iran to accept a peace agreement, scale back its nuclear ambitions, and stop using the Strait as leverage over global trade.

Current Status: The U.S. has reportedly forced 14 Iran-linked vessels to turn back within the first 72 hours of the blockade, while around 800 ships remain stranded inside the Persian Gulf, including more than 300 oil and gas tankers.

U.S. officials stressed that the blockade applies to Iranian ports and coastline rather than the Strait of Hormuz itself. The restrictions cover all ships heading to or from Iranian ports, regardless of nationality, while the U.S. is also targeting Iranian-flagged vessels and so-called “dark fleet” ships suspected of supporting Tehran.

UPS is expanding the use of RFID technology across its U.S. delivery network to improve package tracking and reduce manual work. The company has invested $100 million so far and plans to spend more as it rolls out RFID tags in shipping labels and sensors across trucks, stores, and delivery facilities.

Automation Time: The technology automatically tracks packages as they move in and out of buildings and vehicles, giving customers more accurate updates on shipment locations.

Track Record: UPS said the system has already helped reduce package misloads by nearly 70% since 2024. The company expects RFID to eliminate around 20 million manual package scans each day, lowering labor costs and improving delivery accuracy.

UPS is making the move as part of a broader effort to automate more of its operations and improve profitability. Rival companies such as FedEx and Amazon are also investing in more advanced package tracking systems

Lawmakers on the House Commerce, Manufacturing, and Trade Subcommittee said the U.S. must strengthen its semiconductor supply chain to protect both economic stability and national security during a hearing on April 15.

National Threat: Chairman Gus Bilirakis said semiconductors are essential to everything from vehicles and smartphones to defense systems, and warned that supply chain vulnerabilities could threaten America’s competitiveness.

Stronger Security: Gabe Evans, a U.S. House Representative from Colorado, raised concerns about China's attempts to access sensitive chip-making information, with industry witnesses stressing the need for stronger physical security, tighter IT controls, continuous monitoring, and regular testing.

Lawmakers also discussed the need to balance investment in advanced AI chips with the production of foundational semiconductors used in cars, appliances, and broadband equipment.

China is considering new restrictions on exports of advanced solar manufacturing equipment to the United States, according to a Reuters report. Chinese officials have already held initial talks with solar equipment makers as Beijing looks at expanding its export controls into another strategic industry.

Solar Power: China currently produces more than 80% of the world’s solar panel components and is home to the top suppliers of solar cell manufacturing equipment. Any restrictions could disrupt plans by U.S. companies to build or expand domestic solar factories as Washington pushes to reduce dependence on Chinese supply chains.

Why Now? Analysts say Beijing is increasingly worried that efforts by companies such as Tesla to build a more self-sufficient U.S. solar industry could gradually erode China’s overwhelming control over the global solar supply chain. Companies that could be affected by the restrictions include First Solar, Sunrun, and other U.S. solar manufacturers and installers.

The European Union has agreed to double tariffs on imported steel to 50% and reduce duty-free import quotas in an effort to protect its steel industry from a surge of cheap foreign supply, especially from China.

What’s the deal: Under the deal, the amount of steel that can enter the EU without tariffs will be cut by 47% to 18.3 million tons per year. EU officials say the move is necessary because global overcapacity, driven largely by China’s subsidized steel industry, is hurting European producers

European steel output fell to a historic low of around 126 million tons last year, while imports reached record levels and accounted for nearly one-third of the bloc’s steel consumption. Industry group Eurofer said the new measures could help protect around 230,000 jobs across Europe

The Federal Motor Carrier Safety Administration is withholding more than $73 million in federal highway funding from New York after finding major problems in the state’s commercial driver licensing program.

Federal officials said New York failed to revoke improperly issued non-domiciled commercial learner’s permits and commercial driver licenses.

Key Details: A federal audit reviewed 200 records and found that 107 licenses had been issued in violation of federal law, representing a failure rate of more than 53%. The audit found that New York had been issuing eight-year licenses to some foreign drivers regardless of when their legal status in the U.S. expired.

Transportation Secretary Sean Duffy said the decision reflects safety concerns and New York’s failure to fix the problems after repeated warnings. The withheld amount represents roughly 4% of the state’s funding under major federal highway programs.

U.S. industrial production fell 0.5% in March as manufacturing, mining, and utility output all declined. The decline was steeper than expected, with economists having forecast a slight increase in production.

Key Details: Manufacturing output, which makes up most of total industrial production, slipped 0.1% after a stronger gain the previous month. Utility output fell 2.3%, while mining production also declined. The weakness was driven by lower output of consumer goods, business equipment, materials, motor vehicles, primary metals, and furniture.

The report suggests that higher energy and material costs linked to the conflict in the Middle East are starting to weigh on factory activity and business confidence. Factory capacity utilization also declined, although manufacturing output excluding autos still rose slightly for a third straight month.

Union Pacific has signed a new seven-year contract with Rocky Mountain Steel Mills for the domestic production of steel rail. The agreement reinforces Union Pacific’s commitment to sourcing most of its rail from U.S. manufacturers.

Rocky Mountain Steel, based in Pueblo, Colorado, is the only remaining dedicated rail production facility in the United States. The company is preparing to open a new long-rail mill this year, following more than $1 billion in investment in domestic steel production.

The new facility will produce 100-meter rail lengths, which require 80% fewer welds than standard rail and can improve track safety and efficiency. The mill will also be powered by a large solar farm, making it the world’s largest solar-powered steel mill.

Dry bulk shipping rates climbed to a four-month high as stronger cargo demand and a tighter supply of vessels continued to support the market. The Baltic Dry Index rose 5.5% to 2,484 points, marking its ninth consecutive daily gain.

Rising Index: The Baltic Dry Index rose 5.5% to 2,484 points in London, marking its ninth straight day of gains. The index measures freight rates for Capesize, Panamax, and Supramax vessels that transport commodities such as iron ore, coal, and grains.

Big Gains: The biggest gains came from the Capesize segment, which is closely tied to the iron ore trade. Rates for these vessels reached their highest level of 2026 as more cargo entered the market and ship availability declined, particularly across the Pacific.

Higher Brazil-to-China shipments, along with stronger Chinese iron ore imports and seasonal construction demand, also contributed to the rise in freight rates.