US to Stockpile Cobalt Worth $500 Million

For the first time in more than three decades, the U.S. Defense Department is stepping back into the cobalt market. The Defense Logistics Agency (DLA) has issued a tender seeking offers for up to 7,500 tons of cobalt over the next five years, in a deal valued at as much as $500 million.

The move marks the first cobalt purchase for America’s strategic stockpiles since 1990, signaling Washington’s heightened urgency to shore up supplies of critical minerals essential for defense systems, batteries, and advanced manufacturing.

🔄 Policy Reversal: For decades, the DLA sold off cobalt, drawing down the large reserves it had built during the Cold War after budget cuts in the 1990s and 2000s.

💵 Buying Spree: The Pentagon’s cobalt tender is part of a wider procurement drive backed by $2 billion in new funding under Trump’s recent spending legislation. Since July 30, the DLA has launched more than six tenders for critical minerals, including niobium, graphite, and antimony.

📈 Costly Cobalt: According to experts, this move could push cobalt prices higher, especially for alloy-grade material, a niche segment of the market. Prices are already up 42% this year following the Democratic Republic of Congo’s export ban aimed at supporting the market.

After multiple rounds of heated negotiations, the US and the European Union arrived at a framework for a trade deal. According to the statements, the EU has agreed to eliminate tariffs on all US industrial goods and provide “preferential access” to American seafood and agricultural products.

On the other hand, EU imports to the US now face a reduced blanket tariff from 30% to 15%.

🇪🇺 Most Favored Nation: The US will apply MFN rates of below 15% on aircraft and aircraft parts, generic pharmaceutical (including ingredients and chemical precursors) and unavailable natural resources, like cork. The U.S. also committed to cap tariffs on semiconductors and lumber at 15%.

⛽️ Big Energy: The deal also includes EU commitments to purchase $750 billion worth of U.S. energy and invest $600 billion in the U.S. economy over the coming years.

✅ Best Deal: EU Trade Commissioner Maros Sefcovic called it “the most favorable trade deal the U.S. has extended to any partner,” while noting digital services and wine remain excluded.

Orders for new containerships have reached a record 10.4 million TEU of capacity, according to market intelligence firm Linerlytica, sparking concerns of a looming supply glut. Major carriers, including MSC, CMA CGM, ONE, COSCO, and Evergreen, have all expanded aggressively, with order books equal to 30–40% of their existing fleets.

Linerlytica warned the industry is approaching levels not seen since the mid-2000s, when oversupply led to a decade-long drag on freight rates. The orderbook now represents 31.7% of the global fleet, the highest ratio since 2010.

The current boom comes at a time of rising costs, uncertain freight rates, and geopolitical headwinds, including U.S. tariffs, planned fees on Chinese-built vessels, and global economic volatility.

Johnson & Johnson announced a $2 billion investment to expand its manufacturing footprint in the United States, beginning with a new facility in Holly Springs, North Carolina.

The investment includes a 10-year partnership with Tokyo-based Fujifilm Biotechnologies to operate a 160,000-square-foot drug production facility, expected to create 120 jobs. It builds on Fujifilm’s existing $3 billion deal with Regeneron to manufacture drug products in the same region.

J&J joins major pharmaceutical players like Eli Lilly and AstraZeneca in scaling up U.S. operations amid growing trade pressure. The company has also committed to additional U.S. facility announcements in the coming months and previously pledged to boost U.S. investments by 25% to over $55 billion through 2029.

Nvidia has asked key suppliers — including Amkor Technology, Samsung Electronics, and Foxconn — to suspend work tied to its H20 AI chips after Beijing ordered Chinese firms to stop purchases on security grounds, according to reports. The move follows warnings from China’s cyberspace regulator that the chips could contain “backdoors.”

The suspension casts doubt on the H20’s return to China, despite U.S. approval of export licenses earlier this summer. Nvidia CEO Jensen Huang said the company has reassured Beijing that the chips have no remote-access risks and is in active discussions with regulators.

China had previously urged tech giants like ByteDance, Alibaba, and Tencent to halt orders, escalating the dispute. Nvidia already wrote down $4.5 billion in unsold H20 inventory in May and said quarterly revenue would have been $2.5 billion higher without export curbs.

According to reports, Boeing is in advanced discussions to sell as many as 500 aircraft to China, a potential breakthrough that could end an eight-year sales drought dating back to President Trump’s 2017 state visit. The deal, still under negotiation, hinges on easing trade tensions between Washington and Beijing and could collapse if relations sour.

The prospective Boeing sale is expected to anchor a broader U.S.–China trade agreement, serving both Trump and President Xi Jinping’s political and economic agendas.

For Boeing, regaining market access is crucial: China is forecast to more than double its fleet to nearly 10,000 aircraft over the next 20 years, far exceeding what homegrown planemaker Comac can deliver.

The company’s last major China order was in 2017 for 300 planes worth $37 billion. Since then, Boeing has booked only 30 new Chinese orders.

The Trump administration has widened its 50% tariffs on steel and aluminum to include 407 additional product categories, sharply escalating the reach of the policy. The expanded list now covers auto parts, plastics, furniture components, fire extinguishers, machinery, construction materials, and specialty chemicals that contain or are made from steel and aluminum.

Commerce Department officials said the move closes loopholes and prevents circumvention of existing tariffs, while strengthening domestic steel and aluminum industries. However, experts warn the impact will be massive: the levies now cover an estimated $320 billion worth of imports, up from about $190 billion previously.

Economists caution that the broadened duties could further squeeze U.S. supply chains, raise costs for manufacturers, and push consumer prices higher.

China has withdrawn export restrictions on rare earth magnets to India, offering relief to automakers and EV component makers who rely on Beijing for over 80% of their magnet imports.

The curbs, imposed in April, had tightened licensing and end-use checks, leading to higher costs, production delays, and squeezed supplies. Automakers dipped into limited reserves or turned to expensive alternatives in Japan and Australia, raising concerns about India’s electrification roadmap.

With the curbs now lifted, supply flows are expected to stabilize, lowering costs and easing bottlenecks in EV manufacturing. The move comes against the backdrop of the United States imposing a 50% tariff on Indian exports starting August 27. Analysts note this is one of several developments suggesting New Delhi is becoming more comfortable leaning on China, even as trade frictions with Washington intensify.

U.S. crude oil exports are set to climb above 4 million barrels per day in August and September, rebounding after a summer slowdown, according to reports. The rise comes as domestic refineries enter preventive maintenance season, freeing up supplies that were previously absorbed by high U.S. fuel demand.

Competitive pricing is also driving momentum: West Texas Intermediate crude is cheaper in Asia than comparable Middle Eastern grades, prompting traders to book cargoes for October loading.

The Trump administration’s threat of tariffs on India for purchasing Russian oil has added urgency for U.S. exporters to capture Asian demand. Market watchers say the surge could mark the strongest export flows since early 2025.

U.S. soybean farmers have called on President Donald Trump to strike a purchase agreement with China, warning that prolonged trade tensions could devastate the industry. In a letter sent Tuesday, the American Soybean Association said growers face “extreme financial stress” as prices fall while input and equipment costs rise.

China, the world’s largest soybean buyer, has not pre-purchased U.S. soybeans from the upcoming harvest — an unusual delay that has heightened concern. Instead, Beijing has been sourcing more from Brazil, a shift that could cost American farmers billions in lost sales.

In the 2023–24 marketing year, China accounted for 54% of U.S. soybean exports, worth $13.2 billion. Farmers say failure to secure new contracts risks eroding that market share permanently.

Japan’s exports dropped 2.6% in July from a year earlier, the sharpest decline since February 2021 and deeper than the 2.1% fall economists had expected. Imports also fell 7.5%, though less than forecast.

Shipments to the U.S. — Japan’s largest export market — slid 10.1% in July, following an 11.4% drop in June. Auto exports to the U.S., a key sector, plunged 28.4% year-over-year, steeper than June’s 26.7% fall.

Exports to China also weakened, slipping 3.5%, though shipments to Hong Kong jumped 17.7%. The trade slump pushed the Nikkei 225 down 0.9%, while the yen eased to 147.79 per dollar.

The downturn comes despite Japan’s stronger-than-expected GDP growth of 0.3% quarter-on-quarter in Q2, supported by a rebound in auto shipments earlier in the year.

Apple is ramping up iPhone production in India as it prepares to ship all four iPhone 17 models — including Pro versions — from the country for the first time. The expansion spans five factories, with Tata Group’s plants in two Indian states, Tamil Nadu and Karnataka, expected to handle up to half of India’s iPhone output within two years.

In the four months since April, India exported $7.5 billion worth of iPhones. Apple’s move reflects its strategy to cut reliance on China and mitigate tariff risks, even as Trump’s administration has imposed 50% tariffs on India, from which iPhones remain exempt.