USPS Seeks DOGE's Help, Buy Canadian Gains Heat, PepsiCo Acquires Poppi

Welcome to CrossDock’s Weekly Dispatch,

We’re back with the key stories shaping supply chains, e-commerce, logistics, and retail. From the USPS partnering with Elon Musk’s DOGE to the EU pausing its tariffs on the United States, here’s a quick overview of last week’s biggest developments.

Big News 📣

EU Hits Pause on US Tariffs

The European Union has delayed its first wave of retaliatory tariffs on U.S. goods until mid-April, giving more room for talks with Washington. The move comes in response to President Trump’s 25% tariffs on EU steel and aluminum, which reignited transatlantic trade tensions.

The EU’s planned countermeasures, worth up to €26 billion ($28B), could target bourbon, industrial goods, textiles, and home appliances.

Officials say the delay aligns their responses for greater strategic impact without softening the message. Talks are ongoing, and tariffs are expected to be announced in mid-April. For now, retaliation is on hold—but not off the table.

• Boats to tomatoes 🍅: The intended first phase targeted U.S. motorboats and motorcycles with 50% tariffs. The second phase, set for April 13, is planned to levy duties on beer, poultry, beef, and produce like soybeans, tomatoes, and raspberries

Retail Sales Inch Up, Led by Online and Essentials

U.S. retail and food services sales rose 0.2% in February to $722.7 billion, the Census Bureau reported. While the increase was small, some parts of the economy showed strength. Online shopping grew 2.4% from January and 6.5% from last year. Sales at grocery and beverage stores went up 2.6%, and health and personal care stores rose 6.7%, showing steady demand for everyday items. Overall, sales from December to February were 3.8% higher than the same period last year.

• Power drop ⚡️: Electronics and building supply retailers struggled, dropping 4.7% and 2.5%, respectively

   

• Jan was the worst: Revised data showed January’s dip was deeper than thought, at -1.2%.

Forever 21 Files Bankruptcy and to Close All U.S. Stores

Forever 21 is expected to close all U.S. locations after filing for bankruptcy for the second time, citing intense competition from Shein and Temu.

The retailer began liquidation sales at over 350 stores, hoping for a last-minute buyer. Executives blamed the trade loophole—De Minimis—which lets rivals avoid import duties, giving them a pricing edge.

Despite efforts to cut costs, the company lost $150 million in 2024 alone. Its U.S. operations will end, but the brand will live on globally under Authentic Brands Group. The company currently owes $1.58 billion in loans and supplier dues.

• More store closures 🏪: According to Coresight Research, 7325 retail stores shut their doors in 2024, and this number is expected to reach 15,000 in 2025
  

• Deep Dive ✅ : In the latest issue of CrossDock Spotlight, we have traced the rise and fall of Forever 21 - Check out the full story here

USPS to Team Up With DOGE

The U.S. Postal Service has signed an agreement with Elon Musk’s DOGE to help restructure the struggling agency. With over $100 billion in losses since 2007, USPS plans to cut 10,000 jobs via early retirement and explore new efficiencies.

Postmaster General Louis DeJoy says DOGE will assist in streamlining contracts, labor programs, and outdated systems. The controversial move has sparked political backlash, with critics warning of potential privatization. Meanwhile, President Trump is reportedly eyeing USPS–Commerce Department integration.

TLDR 🗓️

Nvidia Pledges Billions to Boost U.S. Manufacturing

Nvidia CEO Jensen Huang has announced the company will invest "several hundred billion dollars" into U.S.-based semiconductor and electronics manufacturing over the next four years. The move comes as part of a broader shift away from Asia amid rising tariff threats and geopolitical tensions. Huang said the company plans to procure nearly $500 billion in electronics, with a major portion produced domestically. Nvidia’s domestic manufacturing plan aligns with President Trump’s “America First” industrial policy.

Temu Owner PDD Posts Slowest Revenue Growth

Chinese e-commerce giant PDD Holdings, owner of discount platforms Pinduoduo and Temu, reported its slowest quarterly revenue growth since early 2022. Q4 revenue rose 24% to 110.61 billion yuan ($15.3 billion), falling short of analyst estimates.

Net profit rose 18% to 27.45 billion yuan, also marking a slowdown approximated to previous quarters. The company cited rising domestic competition, global trade tensions, and U.S. tariff uncertainty.

For the full year, PDD Holdings saw its total revenue surge 59% to 393.84 billion yuan, while net profit soared 87% to 60.03 billion yuan. Meanwhile, rival Alibaba reported its strongest revenue growth since late 2023 last month, highlighting intensifying competition in the Chinese e-commerce space.

‘Buy Canadian’ Movement Takes Toll on U.S. Businesses

A wave of economic patriotism is sweeping across Canada as consumers respond to U.S. trade tensions and rhetoric with a sharp pivot toward homegrown goods and services. Early data shows major impacts: U.S. tour operators report booking declines of up to 85%, American distilleries are losing export deals, and Canadian grocers are seeing a 10% boost in local product sales.

President Donald Trump’s recent tariff threats and comments about annexing Canada have intensified the backlash, prompting widespread boycotts. At the same time, Canadian travel to the U.S. has plunged — with February data showing a 23% drop in return trips and 12% fewer border crossings in tourism-heavy regions like New York.

Economists estimate that if each Canadian household redirected just $25 weekly from foreign goods to Canadian ones, it could grow GDP by 0.7% and create 60,000 jobs.

General Mills Cuts 2025 Sales Forecast

Cheerios maker General Mills has slashed its fiscal 2025 sales guidance, now expecting organic sales to drop by up to 2%, reversing earlier projections of modest growth. The company cited weakening consumer spending and broader economic uncertainty as key drivers, particularly in its snack category.

CEO Jeffrey Harmening said shoppers are “looking for value,” prompting General Mills to cut prices on items like fruit snacks and boost marketing efforts. North American retail sales fell 7% last quarter, steeper than the company’s overall 5% revenue dip. Shares fell 3.3% following the announcement.

Trump’s China Ship Fee Plan Rattles U.S. Coal and Agriculture Exports

President Donald Trump’s proposed plan to revive U.S. shipbuilding by imposing massive port fees on China-linked vessels is causing major disruptions in U.S. export markets, according to a Reuters report. The draft executive order could levy fines of up to $1.5 million on ships made in China or operated by fleets with Chinese-built vessels.

Exporters of coal, grain, oil, and liquefied natural gas are warning that the looming fees are already limiting access to cargo vessels, driving up costs and threatening global competitiveness. Xcoal CEO Ernie Thrasher told Reuters that coal exports could come to a halt within 60 days, risking $130 billion in shipments and thousands of jobs.

Agricultural exporters could face up to $930 million in added annual costs, undermining their razor-thin margins in global markets, according to the American Farm Bureau Federation.

Suggested Reading: Can the U.S. Build Great Ships Again?

Key Takeaways from FedEx’s Q3 FY25 earnings report

• FedEx reported Q3 FY25 adjusted diluted earnings per share (EPS) of $4.51, up from $3.86 in Q3 FY24. GAAP diluted EPS was $3.76
  

• Quarterly revenue reached $22.2 billion, a 2% increase from Q3 FY24. Operating income rose to $1.29 billion (GAAP) and $1.51 billion (adjusted)
  

• Total U.S. domestic average daily volume (ADV) increased 6% year-over-year in Q3, reaching 14.8 million packages per day, driven largely by ground home delivery/economy, which rose 11%
  

• U.S. priority package yield rose 5% to $26.44 per package. International priority yield also increased by 8%, reaching $59.65 per package

• FedEx's Freight Operating income dropped by 23%. This was driven by fewer shipments, lower weight per shipment, and reduced fuel surcharge revenue.

Red Sea Shipping Costs to Remain High

The cost of shipping through the Red Sea is expected to stay elevated following fresh U.S. airstrikes on Yemen, targeting Houthi-controlled regions. Industry experts say that insurance premiums, already as high as 2% for U.S. and UK-linked ships, may rise further.

The Houthis have threatened renewed attacks on U.S. vessels in retaliation. Over 100 ship attacks have been recorded since November 2023. Maritime security experts warn of a "critical threat" for Israeli and American ships. Rising risk levels could add hundreds of thousands of dollars to shipping costs per voyage.

South Korea’s Chip Exports to China Plunges

South Korea’s semiconductor exports to China, including Hong Kong, dropped 31.8% year over year in February, worsening the 22.5% decline in January. The fall follows new U.S. restrictions on advanced chip exports to China, including high-bandwidth memory.

Major producers like SK Hynix and Samsung are feeling the pinch. China accounts for nearly 40% of South Korea’s tech exports. Overall, chip exports fell 3% in February as falling prices and a tech transition added pressure. The slump threatens South Korea’s 2025 growth, already under strain from tariffs and weak domestic spending.

PepsiCo Acquires Poppi for $1.95 Billion

PepsiCo has announced the acquisition of prebiotic soda brand Poppi for $1.95 billion, aiming to strengthen its presence in the fast-growing functional beverage market. The deal includes $300 million in expected cash benefits, lowering the net purchase price to $1.65 billion. Poppi gained popularity after appearing on Shark Tank in 2018. Despite its success, the brand recently faced class-action lawsuits over gut health claims and has agreed to an $8.9 million settlement. Following the announcement, PepsiCo shares rose nearly 2%.

Judge Dismisses Shareholder Lawsuit Against Amazon

A U.S. District Judge in Seattle has dismissed a lawsuit accusing Amazon of misleading shareholders about its treatment of third-party sellers and the scale of its infrastructure expansion.

The proposed class action claimed Amazon used algorithms to favor its private-label products and concealed costly overbuilding, which led to a $2 billion loss in 2022.
Judge John Chun ruled there was insufficient evidence to prove that Amazon executives, including Jeff Bezos and Andy Jassy, knowingly misled investors.

Amazon still faces a separate antitrust lawsuit filed by the FTC and joined by 18 states, set to go to trial in October 2026.

Tidbits 🍿

• ​General Motors and NVIDIA have joined forces to drive the future of transportation, integrating AI to revolutionize vehicle development and manufacturing

• ​DoorDash has partnered with Klarna to offer flexible payment options to its U.S. customers
  

• The U.S. National Highway Traffic Safety Administration (NHTSA) has issued a recall for 46,096 Tesla Cybertrucks, citing a safety risk caused by exterior panels that could detach while driving

• Walmart has developed Wally, a GenAI-powered assistant to help merchants

• Google is acquiring cloud cybersecurity startup Wiz in a $32 billion all-cash deal

Reading List 📚 :

This week's top book picks from CrossDock 📖:

• Shoe Dog by Phil Knight

• Deep Sea and Foreign Going by Rose George

Do you have recommendations? Drop us a message, and we will add it to next week’s list.

This newsletter was curated by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!