This week, U.S. trade tensions escalated as China filed a WTO dispute over new U.S. tariffs, citing violations of GATT 1994 obligations. The U.S. trade deficit surged to a near-record $98.4 billion in December, fueled by businesses rushing to import goods ahead of potential tariffs. Meanwhile, rail traffic rebounded, with intermodal volumes driving a 4.5% year-over-year increase. On the policy front, President Trump proposed modernizing the U.S. air traffic control system following a deadly crash, while uncertainty looms over the Panama Canal as the U.S. pressures Panama to limit Chinese influence. In Mexico, border manufacturing hubs face economic strain as tariff threats put billions in trade at risk. Read the full articles below.
Weekly Freight Report: February 7, 2025
February 7th, 2025
China Says It Will Protect Its Own Interests in Face of U.S. ‘Bullying’
China has intensified its stance against U.S. trade tariffs, condemning them as “bullying” and vowing to take necessary measures to protect its interests while still expressing willingness to resolve disputes through dialogue.
Record High Imports Pressure US Trade Deficit
The U.S. trade deficit surged in December to its highest level since 2022, driven by record-high imports as businesses rushed to secure foreign goods ahead of potential tariffs, fueling concerns about inflation and the impact of protectionist trade policies.
Mexican Border Cities Are in Limbo as Tariff Threats Spark Fears of a Recession
Uncertainty looms over Mexican border manufacturing hubs as President Trump’s threatened 25% tariffs put billions in U.S.-Mexico trade at risk, raising fears of economic downturns, job losses, and stalled investments.
The Fight for Control of the Panama Canal
The Trump administration’s push to regain control of the Panama Canal faces significant legal and diplomatic hurdles, with experts suggesting the dispute is more likely a high-stakes negotiation tactic than a genuine attempt at repossession, as Panama moves to distance itself from China’s influence.
Trump to Ask Congress to Upgrade U.S. Air Traffic Control System
Following a deadly helicopter-plane collision near Washington, President Trump called for congressional action to modernize the U.S. air traffic control system, criticizing outdated technology and proposing a streamlined overhaul with private sector involvement, including input from Elon Musk’s team.
Weekly U.S. Rail Traffic Back Ahead of 2024 Levels
U.S. weekly rail traffic rebounded with a 4.5% increase for the week ending Feb. 1, driven by an 8.2% rise in intermodal volume, while North American rail traffic also saw year-over-year growth, reflecting strong gains in Canada and Mexico.
China Initiates WTO Dispute Complaint Regarding U.S. Tariff Measures
China has filed a WTO dispute against the U.S., arguing that the 10% additional tariffs and restrictions on duty-free treatment for Chinese goods violate GATT 1994 obligations, formally initiating consultations to seek resolution before potential adjudication.
