Good morning.

The AI race is no longer just about chatbots and chips — it’s becoming a full-scale export strategy. The Trump administration is preparing a new financing program worth billions of dollars to help foreign companies buy American AI technologies, another sign that Washington now sees AI infrastructure as a strategic weapon in its growing tech rivalry with China.

The program would support exports of U.S. AI systems, advanced chips, and related infrastructure through loans, guarantees, and insurance backed by the U.S. Export-Import Bank.

Let’s dive into today’s edition.

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The European Union has agreed to move forward with a trade deal signed with the U.S. last year, clearing the way for lower tariffs on certain American goods and helping avert threatened new tariffs on European car imports.

Recap: The agreement comes after Brussels had paused ratification earlier this year following President Donald Trump’s new global tariff measures and escalating trade tensions over Europe’s stance on Greenland. Trump later warned the EU could face new 25% tariffs on automobile imports if the deal was not implemented by July 4.

What’s the deal? Under the updated framework, the EU will eliminate remaining tariffs on U.S. industrial goods and reduce duties on select seafood and agricultural imports. The broader agreement also raises tariffs on most EU exports entering the U.S. to as high as 15%, while the EU has pledged roughly $600 billion in investment into the American economy.

Big Picture: European officials described the deal as a foundation for stabilizing transatlantic trade relations and preventing further escalation between two of the world’s largest trading blocs.

The U.S. Department of Transportation has launched a new digital registration platform called “Motus” aimed at cracking down on fraud and unsafe operators across the U.S. trucking industry.

Why a new system? The new system replaces a decades-old registration network that officials said allowed fraudulent carriers and “chameleon” trucking companies to repeatedly re-enter the market under new identities. Federal officials estimate that several thousand suspicious registration numbers are currently tied to fraudulent operators.

What will it do? Under the updated system, trucking companies and commercial drivers will now face stricter identity verification requirements, including government-issued ID checks, digital facial scans, biometric verification, and enhanced business validation tools. The platform also consolidates multiple disconnected federal databases into a single system designed to improve oversight and enforcement.

Transportation Secretary Sean Duffy said the overhaul is intended to eliminate loopholes that allowed unsafe or fraudulent operators to evade enforcement, while also streamlining compliance and registration processes for legitimate carriers and freight operators.

The U.S. Department of Justice has indicted four major Chinese container manufacturers for allegedly conspiring to restrict shipping container production and inflate prices during the pandemic-era supply chain crisis.

Output cuts: The companies — China International Marine Containers, Singamas Container Holdings, Shanghai Universal Logistics Equipment, and CXIC Group Containers — collectively account for roughly 95% of the world’s standard unrefrigerated shipping container production. U.S. prosecutors allege the firms coordinated output cuts between 2019 and 2024 to drive up prices.

Inflated Costs: According to the indictment, the alleged cartel doubled standard container prices between 2019 and 2021 and boosted manufacturer profits nearly 100-fold during the peak of the global supply chain crunch. Prosecutors also alleged the companies coordinated production limits, monitored compliance through surveillance systems, and discouraged the construction of new factories.

The global AI boom is fueling a sharp rise in electronics exports across Southeast Asia, helping countries like Malaysia and Singapore post record trade numbers despite ongoing shipping disruptions and higher energy costs linked to the Middle East conflict.

Key Numbers: Malaysia’s electrical and electronics exports surged 46.4% year over year in April to a record 88.16 billion ringgit ($22 billion), while total exports jumped 36.9%—the fastest pace in nearly four years. Singapore’s non-oil domestic exports also climbed 24.5%, marking their strongest growth since 2012, with electronics shipments rising 66.7%.

AI Exports: Much of the growth is being driven by AI-related semiconductor demand, with exports of integrated circuits, optical equipment, and computer-related products rising sharply across the region. Shipments from Singapore to the U.S. surged 224%, while exports to South Korea and Taiwan more than doubled.

The White House said President Donald Trump and Chinese President Xi Jinping agreed to establish new “trade” and “investment” boards during their summit in Beijing as both countries seek to stabilize economic ties amid ongoing geopolitical tensions.

New Trade: According to the White House, the new mechanisms are intended to manage trade in “non-sensitive goods,” address investment concerns, and improve broader economic coordination between the world’s two largest economies. The agreement also included commitments tied to rare earth supply chains, market access, and agricultural purchases.

Key Details: China reportedly pledged to buy 200 Boeing aircraft and at least $17 billion annually in U.S. agricultural products over the next three years, while also restoring market access for American beef exports. Beijing additionally agreed to address U.S. concerns surrounding rare earth minerals and processing equipment restrictions.

Canadian Prime Minister Mark Carney said Canada has “fallen way behind” in port productivity and trade logistics, warning that inefficient ports and rail networks are undermining the country’s economic resilience and export competitiveness.

Port Problems: Speaking in Vancouver, Carney said Canada must urgently modernize port infrastructure, improve rail connectivity, and expand trade corridors if it hopes to reduce its heavy dependence on the U.S. market. Before 2025, more than 75% of Canadian exports were destined for the U.S., with roughly one-fifth of Canada’s economy tied to cross-border trade.

Ambitious Goals: Carney has set a goal of doubling the value of Canada’s non-U.S. exports by 2035, equivalent to roughly $220 billion in additional trade. His government is already prioritizing major infrastructure projects, including the expansion of the Port of Montreal and a proposed oil pipeline connecting Alberta to Canada’s Pacific Coast.

Legal disputes are erupting across the global oil shipping industry as the effective closure of the Strait of Hormuz disrupts freight benchmarks, tanker contracts, and shipping derivatives worth billions of dollars.

Key Details: At the center of the crisis is Mercuria’s lawsuit against the Baltic Exchange in London. Mercuria alleges the exchange “improperly determined” the TD3C freight benchmark, which tracks the cost of shipping a 2 million-barrel supertanker from Saudi Arabia to China. The trader claims the distorted benchmark caused “hundreds of millions of dollars” in losses.

What’s the issue? The TD3C benchmark has surged from roughly $29,000 per day earlier this year to more than $400,000 as commercial shipping activity through the Gulf collapsed. With few real transactions taking place, brokers have been forced to estimate hypothetical freight prices, fueling concerns over benchmark reliability, market transparency, and potential manipulation.

More in line: TotalEnergies’ oil trading arm, Totsa, is also weighing legal action against the exchange over how the freight benchmark was handled during the Hormuz disruption.

U.S. manufacturing activity climbed to its highest level in four years in May as companies ramped up inventories to protect against supply shortages and rising costs tied to the Iran conflict and disruptions in the Strait of Hormuz.

Key Numbers: According to S&P Global, the flash manufacturing PMI rose to 55.3 in May from 54.5 in April, beating forecasts and marking the strongest reading since May 2022. Manufacturers boosted “safety stock” inventories as shipping disruptions, rising energy prices, and supply concerns strained global trade flows.

The survey also showed mounting inflation pressures across the industrial economy. Factory input prices surged to their highest level since June 2022, while supplier delivery times deteriorated sharply as companies faced shortages in products ranging from fertilizers and aluminum to consumer goods.

U.S. ports and marine terminals will need roughly $6.7 billion in investment over the next five years to modernize cargo-handling infrastructure as aging cranes, rising trade volumes, and geopolitical tensions reshape global shipping networks.

Cranes Needed: According to the National Association of Waterfront Employers, ports across the country are expected to require more than 100 new ship-to-shore cranes by 2031, with over $5 billion projected for new cranes and cargo-handling systems alone. Additional funding is expected for rail-mounted stacking cranes, repairs, rail connectivity, and port-side infrastructure upgrades.

Why does this matter? The investment push comes amid growing uncertainty over U.S. tariffs on Chinese-made cranes, which remain dominant globally. Existing tariffs and proposed penalties have sharply increased equipment costs while complicating long-term procurement decisions, especially as crane manufacturing timelines often stretch across multiple years.

The Next Step: Industry groups are now lobbying Washington to support domestic crane manufacturing through programs such as the SHIPS Act and the Defense Production Act, warning that the U.S. risks falling behind in maritime infrastructure and supply chain competitiveness without large-scale industrial investment