Good morning.

The Office of the United States Trade Representative has launched a formal review of the Section 301 tariffs first imposed on Chinese imports during President Donald Trump’s first administration, reopening debate around a trade regime that has become deeply embedded in global sourcing and supply chain strategy.

The review covers two separate 25% tariff lists introduced in 2018 that apply to roughly $32 billion worth of Chinese imports across more than 500 tariff categories.

Let’s dive into today’s edition.

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The Federal Bureau of Investigation has issued a nationwide warning over a sharp rise in cyber-enabled cargo theft, as criminals increasingly impersonate legitimate freight brokers, carriers, and logistics providers to hijack shipments and steal high-value goods.

Increasing Incidents: According to the FBI, the schemes have grown significantly more sophisticated over the past two years, combining phishing attacks, fake domains, spoofed emails, and fraudulent load board postings to infiltrate transportation networks. Once access is gained, criminals reroute freight, alter shipping details, and redirect cargo for resale—often before the legitimate carrier realizes its systems have been compromised.

Key Numbers: According to the Federal Bureau of Investigation, estimated cargo theft losses across the U.S. and Canada climbed to nearly $725 million in 2025, up 60% from the previous year, while confirmed theft incidents rose 18%. The average value per theft also jumped 36% to roughly $274,000, reflecting a growing shift toward more targeted, high-value cargo attacks.

President Donald Trump escalated his trade standoff with Europe, warning the European Union that it faces much higher tariffs if it fails to bring its levies on American goods to zero by July 4.

What’s happening? Trump says the EU has been too slow in implementing the agreement reached last year in Turnberry, Scotland, accusing the bloc of failing to uphold its side of the deal. In a post on Truth Social, he said the EU had promised to reduce tariffs on U.S. goods to zero under the agreement and that he had “waited patiently” for the bloc to deliver.

Key Details: Under the framework agreed in 2025, most EU exports to the U.S. would face a 15% tariff—significantly lower than the 30% duties Trump had previously threatened. The agreement also reduced tariffs on European cars to 15%, though separate U.S. sectoral tariffs on steel and aluminum remain in place.

Americold is moving 12 U.S. cold storage warehouses into a $1.3 billion joint venture with investment firm EQT, as demand for temperature-controlled logistics infrastructure continues to rise across food and grocery supply chains.

What’s the deal? Under the deal, EQT will take a 70% stake in the venture, while Americold retains 30% ownership and continues managing day-to-day operations. The transaction is expected to generate roughly $1.1 billion in net cash proceeds for Americold, which the company plans to use primarily to reduce debt and strengthen its balance sheet

The portfolio includes facilities with a total refrigerated capacity of 124 million cubic feet and more than 400,000 pallet positions, making the venture one of the largest stand-alone cold storage platforms in North America.

President Donald Trump said the U.S. will temporarily pause its naval escort operation in the Strait of Hormuz after what he described as “great progress” in negotiations toward a broader agreement with Iran, marking a potential de-escalation in a conflict that has disrupted global energy markets for weeks.

Key Details: The operation—internally referred to as “Project Freedom”—was launched after Iran effectively sealed off the Strait of Hormuz through threats involving mines, drones, missiles, and fast-attack craft. Under the U.S. response, American forces escorted commercial tankers through the waterway while blockading Iranian ports and targeting Iranian military assets

Latest Update: However, on Friday, tensions between the U.S. and Iran flared again after both sides exchanged fire in the Strait of Hormuz, with Washington accusing Tehran of launching missiles, drones, and attack boats at U.S. naval destroyers, while Iran claimed American forces had struck its vessels and coastal areas. Oil prices rose following the confrontation.

More than 28,000 foreign truck drivers have lost their U.S. commercial driving privileges after states revoked improperly issued non-domiciled CDLs as part of a sweeping federal crackdown on trucking safety and immigration compliance.

What’s happening? The enforcement push, led by the Federal Motor Carrier Safety Administration under the Trump administration, follows audits that found more than 30 states had issued tens of thousands of licenses in violation of federal rules

Big Picture: Federal officials say the impact on the labor pool could be substantial. FMCSA estimates nearly 194,000 current non-domiciled CDL holders may ultimately lose eligibility under stricter rules finalized earlier this year, potentially shrinking the eligible foreign-driver pool to roughly 6,000 drivers nationwide.

A U.S. trade court has ruled that Donald Trump lacked legal justification for imposing his blanket 10% global tariffs under Section 122 of the Trade Act of 1974, marking the second major judicial setback this year to the administration’s broader tariff strategy.

Invalid Decision: The 2-1 ruling by the New York-based U.S. Court of International Trade found that the administration failed to demonstrate the economic conditions required under Section 122, which permits temporary tariffs only to address “large and serious” U.S. balance-of-payments deficits. The court said Trump’s proclamation did not sufficiently establish those conditions.

What Happened? The tariffs were introduced earlier this year after the U.S. Supreme Court struck down Trump’s reciprocal tariffs imposed under emergency powers through the International Emergency Economic Powers Act (IEEPA). In response, the White House pivoted to Section 122 to preserve a universal 10% import tariff while preparing alternative trade actions.

Shares of UPS and FedEx fell roughly 10% on May 4 after Amazon announced it would open its logistics and fulfillment network to outside businesses through a new offering called Amazon Supply Chain Services.

What is ASCS? The move marks one of Amazon’s clearest attempts yet to compete directly with traditional logistics providers. The service allows companies to use Amazon’s infrastructure for freight movement, warehousing, inventory positioning, and last-mile delivery—effectively commercializing the massive supply chain network Amazon originally built for its own retail operations

Why does this matter? The scale behind the push is significant. Amazon now operates a logistics system that includes more than 100 cargo aircraft, thousands of delivery vans, and one of the world’s largest warehouse networks. Major companies, including Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters, have already signed onto the platform.

Global airfreight rates continue to climb sharply even as cargo demand weakens, highlighting how geopolitical disruptions and fuel inflation are overriding normal market fundamentals across the air cargo industry.

Flying Prices: According to data provider WorldACD, global airfreight spot rates rose 37% year over year to $3.76 per kilogram in the week ending April 12 and are up more than 40% since the Iran conflict began in late February. The increases come despite global demand falling 8% from last year and overall cargo capacity remaining slightly below 2025 levels.

Regional pricing spikes have been especially severe. Spot rates from North America climbed 52% year over year to $2.73 per kilogram, while Africa-origin rates rose 62% to $2.95 per kilogram. Asia-Pacific rates increased by 24% to nearly $5 per kilogram as exporters shifted to air cargo amid delays and congestion in ocean freight networks.

Maersk reported a first-quarter operating loss in its core ocean shipping business as falling freight rates and surging fuel costs continued to pressure the global container shipping industry.

Number Game: The company’s ocean segment posted an EBIT loss of $192 million despite container volumes rising more than 9% year over year, highlighting how industry overcapacity is eroding profitability even as demand remains relatively stable.

Freight rates fell another 14% during the quarter, with CEO Vincent Clerc pointing to continued vessel oversupply and heavy new-ship deliveries across the industry as the primary drivers of pricing weakness.

Big Picture: Maersk still expects global container demand to grow between 2% and 4% this year, but warned that volatility tied to fuel markets, Red Sea disruptions, and geopolitical tensions could weigh on profitability for months