This week, global trade faced fresh turbulence as President Trump’s sweeping tariffs on Canada, Mexico, and China sent shockwaves through the shipping industry, forcing executives into crisis mode at the TPM25 conference. Canada responded by filing a WTO dispute against the U.S., claiming the new tariffs violate international trade agreements. Meanwhile, new OFAC sanctions exposed Houthi coordination with Russia and China to secure safe passage for their vessels amid ongoing Red Sea attacks. In energy trade, experts say U.S. tariffs on Canadian crude oil won’t immediately impact export volumes due to deep industry integration. BlackRock secured a $19 billion deal to acquire ports at the Panama Canal, aligning with Trump’s push to regain U.S. influence in the region. Meanwhile, the White House paused auto tariffs from Canada and Mexico for one month following discussions with major automakers. In a broader effort to rebuild U.S. shipbuilding, Trump proposed tax breaks and new port fees targeting Chinese vessels. Read the full articles below.
Weekly Freight Report: March 14, 2025
March 14th, 2025
Canada, EU Hit Back at U.S. With Tariffs as Trade War Escalates
The European Union and Canada imposed retaliatory tariffs on $49 billion worth of U.S. goods in response to President Trump’s steel and aluminum duties, escalating trade tensions and prompting concerns over supply chain disruptions, rising costs, and economic uncertainty.
Mexico Holds Off on Tariff Retaliation
Mexico is holding off on retaliatory tariffs against the U.S. as President Claudia Sheinbaum prioritizes negotiations over steel and aluminum duties, opting for a diplomatic approach while awaiting a final decision on broader U.S. tariffs set to take effect in April.
Houthis Threaten to Resume Attacks in Red Sea
Houthi rebels in Yemen have threatened to resume attacks on commercial ships in the Red Sea unless Israel lifts its blockade on Gaza, escalating tensions in a region already impacted by previous rebel attacks that have disrupted global shipping routes.
India Prepares Enhanced Tariff Reduction Proposal for U.S. Trade Deal
India is preparing revised tariff reduction proposals as part of ongoing trade negotiations with the U.S., aiming to strengthen economic ties, address trade imbalances, and prevent potential U.S. tariff hikes, while balancing diplomatic priorities and domestic industry protections.
Historic ILA-USMX Agreement Secures Six Years of Stability for East and Gulf Coast Ports
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have signed a historic six-year contract securing labor stability at East and Gulf Coast ports through 2030, featuring record wage increases, enhanced benefits, and protections against automation.
Retailers Rush Goods to U.S. Ports as Costs Loom
Facing uncertainty over tariffs and potential new penalties on Chinese-built ships, U.S. retailers are rushing to import goods, with port activity surging as concerns grow over rising costs, supply chain disruptions, and proposed entry fees that could impact both businesses and consumers.
China's Shipbuilding Boom Is Reshaping Balance of Naval Power
China’s shipbuilding industry has surged to global dominance, with its commercial production fueling both foreign markets and military expansion, prompting U.S. concerns over security risks and economic competition, while proposed U.S. penalties on Chinese-built ships face pushback from retail and agriculture leaders over potential cost increases.
