US Ends De Minimis 📦

The United States is revoking the “de minimis” exemption that allowed packages under $800 to enter tariff-free. Starting August 29, all such shipments—regardless of origin or delivery method—will be subject to standard duties. The move marks a major policy reversal targeting a surge in low-cost imports, especially from Chinese e-commerce platforms.

📈 Volume Surge: Between 2015 and 2024, de minimis shipments rose tenfold—from 134 million to over 1.36 billion annually. U.S. Customs now processes more than 4 million of these packages per day.

✈️ Air Cargo Hit: Since the initial May 2025 removal of China’s exemption, U.S.-bound air freight from Asia has declined 10.7%

🛍️ Fast Fashion Fallout: In 2024, 55% of China–U.S. air cargo consisted of low-value e-commerce goods, up from just 5% in 2018. Platforms like Temu and Shein thrived on this

💵 Two-Tier Tariffs: For postal shipments, the U.S. will impose either (1) an ad valorem duty tied to the country’s effective rate or (2) a temporary fixed tariff between $80 and $200, depending on origin, for the next six months

📉 Retail Shakeup: Experts warn that without duty-free benefits, many consumers may reduce purchases from overseas platforms, leading to lower volumes and price hikes on bargain imports.

President Trump has escalated his administration’s “reciprocal tariff” policy with a new executive order issued July 31. The directive imposes revised tariffs on imports from over 80 countries, introduces a steep penalty for transshipped goods, and targets specific commodities like copper.

🇨🇦 Canada: It now faces a 35% tariff on most non-USMCA-compliant imports, up from 25%

🇲🇽 Mexico: Mexico has secured a 90-day negotiation window, during which USMCA‑compliant goods remain largely exempt

🇧🇷 Brazil: Brazil now faces a steep 50% tariff as the U.S. targets its persistent trade surplus and lack of alignment on strategic sectors

🇮🇳 India: A 25% tariff has been imposed on Indian goods due to longstanding non-reciprocal tariffs and insufficient cooperation on trade and security

🇪🇺 EU: The U.S. and European Union have reached a trade agreement that imposes a standardized 15% tariff on the majority of EU exports entering the American market

🛢️ Copper Import Crackdown: Trump has imposed a 50% tariff on semi-finished copper products such as rods and wires, citing national security and supply chain manipulation by China. Notably, raw scrap copper is exempt, but 25% of high-quality scrap must now remain in the U.S. for domestic processing.

🚛 Transshipment Tariff: Any goods found to be rerouted through third countries to evade tariffs will be subject to a 40% penalty duty, along with possible legal penalties and bans from government procurement.

Union Pacific has struck a landmark deal to acquire Norfolk Southern in an $85 billion transaction that would create the largest rail operator in the U.S. The merger will connect over 50,000 miles of track across 43 states, forming the first operator capable of moving cargo coast to coast on its own network.

The mostly stock-based deal values Norfolk Southern at $320 per share, including a cash component of $88.82 per share. Union Pacific, with an enterprise value of $165 billion, will pay a $2.5 billion break fee if the merger collapses. The two companies expect $2.7 billion in annual synergies from the combination.

While executives described the merger as the next step in “advancing American infrastructure,” it faces a tough road through regulatory review. If approved, the deal would mark the largest U.S. M&A since Microsoft’s Activision acquisition and reshape the country’s freight rail landscape.

Nvidia is facing fresh scrutiny in China after the country’s cyber regulator summoned the U.S. chipmaker over alleged security vulnerabilities in its H20 artificial intelligence chips. The Cyberspace Administration of China claimed the chips, tailored for the Chinese market under U.S. export restrictions, contain location tracking features and can be remotely disabled—raising fears of foreign surveillance.

Nvidia denied any backdoors in its hardware and emphasized its commitment to cybersecurity. The meeting comes just weeks after Washington lifted a ban on H20 sales, prompting Nvidia CEO Jensen Huang to visit Beijing to rebuild ties.

Mars, the maker of Snickers, M&M’s, and Nature’s Bakery, announced it will invest $2 billion to expand U.S. manufacturing and drive innovation through 2026. The investment aims to strengthen local production, where 94% of its U.S. sales are already made.

The plan includes a new $240 million Nature’s Bakery facility in Utah, expected to produce nearly a billion bars annually and create over 230 jobs. This move follows $6 billion in previous U.S. investments and aligns with Mars’ broader strategy, including its $36 billion acquisition of Kellanova, to solidify its leadership in snacks and pet food.

The U.S. goods trade deficit fell 10.8% in June to $86 billion — its lowest level since September 2023 — as imports plunged 4.2% to $264.2 billion, driven by a 12.4% decline in consumer goods.

Exports dipped just 0.6% to $178.2 billion. The unexpected improvement in the trade gap is expected to boost second-quarter GDP figures, with the Atlanta Fed raising its estimate from 2.4% to 2.9%.

Despite the stronger headline, the trade gains reflect weaker domestic demand. Job openings fell by 275,000 to 7.44 million, and hiring dropped by 261,000, pointing to a cooling labor market.

Retail inventories rose 0.3% in June, largely due to a 0.9% jump in motor vehicles, while wholesale stocks ticked up 0.2%. Analysts caution that low inventory levels may blunt some of the trade’s positive impact on GDP.

Two years after acquiring the tech assets of shuttered Seattle startup Convoy, Flexport is selling the freight-matching platform to DAT Freight & Analytics in a deal reportedly valued at $250 million. Convoy, once valued at $3.8 billion, collapsed in 2023 during a freight recession and investor pullback.

Flexport had relaunched Convoy’s digital marketplace, but DAT — a Beaverton, Oregon-based logistics platform owned by Roper Technologies — will now take over operations. The acquisition expands DAT’s reach and aims to enhance its truckload freight matching capabilities for shippers and carriers alike.

Panama’s comptroller general, Anel Flores, has filed a lawsuit with the Supreme Court seeking to nullify the port concession held by Hong Kong-based Hutchison Ports, which operates the Balboa and Cristobal terminals via Panama Ports Company.

The move follows an unreleased audit that Flores claims reveals irregularities in the contract, which was renewed in 2021 and grants Hutchison a 25-year operating concession.

The Panamanian Attorney General’s Office has opened a criminal probe, while Hutchison insists it has fulfilled its obligations and invested over $1.69 billion. If the court deems the contract unconstitutional, it could complicate the planned acquisition of Hutchison’s global port assets—43 in total—by a BlackRock–MSC consortium, which includes the Panama facilities.

French shipping giant CMA CGM reported a 19.9% drop in EBITDA in Q2 2025 despite stable container volumes of 6 million TEUs, as global trade disruptions and Red Sea tensions pressured earnings.

While group revenue held steady at $13.2 billion, shipping revenue edged down to $8.2 billion, with average revenue per container slipping 1.2% to $1,367. CEO Rodolphe Saadé credited the group’s geographic reach and fleet flexibility for weathering the turbulence.

The company’s diversification helped offset maritime headwinds. Logistics brought in $4.6 billion in revenue, while its terminals and air cargo businesses surged.

UPS reported a sharp decline in second-quarter performance, with adjusted net income falling to $1.55 per share from $1.79 a year earlier. Revenue also dipped as the company faced reduced international demand due to new U.S. tariffs on low-value Chinese imports.

The volume of cross-border e-commerce shipments — a key revenue driver — declined more than expected, especially on high-margin China–U.S. routes. As a result, UPS’s international segment struggled, even as domestic ground services saw a 6.6% drop in volume. Ground Saver, the company's economy service, suffered a 23% YoY volume plunge in Q2.

Despite two consecutive quarters of weakening results, UPS did not update its 2025 full-year outlook, which currently projects $89 billion in revenue. Shares have fallen over 19% YTD, compared to FedEx’s 14% decline.

Copper demand is climbing faster than expected as governments pour billions into modernizing power grids to support AI, EVs, and clean energy. Grid investments are forecast to exceed $400 billion this year, with copper usage for transmission and generation upgrades alone set to rise from 12.5 million tons in 2025 to nearly 15 million by 2030, according to Benchmark Mineral Intelligence.

Supply, however, remains constrained due to limited investment in new mining projects, particularly in Chile and the Democratic Republic of Congo. Analysts warn of a looming structural shortage, with Bank of America projecting a 1.84 million ton deficit by 2030.

Data centers and EVs are fueling much of the surge. Copper demand from AI-heavy data centers is expected to jump to 650,000 tons by 2030, while EVs alone could require 2.2 million tons by then.

Samsung Electronics has secured a landmark $16.5 billion contract to manufacture Tesla’s next-generation AI chips, marking its largest-ever deal with a single customer. The eight-year agreement, confirmed by Tesla CEO Elon Musk, will see Samsung produce the AI6 chips at its Texas facility, aimed at powering Tesla’s autonomous driving and humanoid robotics technologies.

The deal offers a lifeline to Samsung’s struggling contract chipmaking business, which has lagged behind market leader TSMC and suffered an estimated $3 billion operating loss in H1 2025. Musk said Tesla would help optimize manufacturing processes and hinted that actual output could exceed the initial deal value.