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 7, 2025
March 7th, 2025
Shipping Executives in Crisis Mode Over Tariff ‘Earthquake’
Global shipping executives, gathered for a major industry conference in Long Beach, were thrown into crisis mode as President Trump imposed steep tariffs on Mexico, Canada, and China, triggering fears of economic turmoil, supply chain disruptions, and skyrocketing costs across industries.
Canada Initiates WTO Dispute Complaint Regarding U.S. Tariff Measures
Canada has filed a WTO dispute complaint against the U.S., arguing that newly imposed tariffs on Canadian goods—25% on non-energy goods and 10% on energy goods—violate international trade agreements under GATT 1994 and the WTO’s Trade Facilitation Agreement.
OFAC Sanctions Reveal Houthis Coordinated Safe Passage for Russian and Chinese Ships Through Red Sea
New U.S. sanctions reveal that Houthi leaders coordinated with Russian and Chinese officials to secure safe passage for their vessels amid ongoing Red Sea attacks, while also engaging in weapons procurement, diplomatic missions to Moscow, and even a human trafficking operation linked to Russian military efforts in Ukraine.
Canada-U.S. Oil Trade Resilient Despite Potential Tariffs
Tariffs on Canadian crude oil are unlikely to immediately impact export volumes to the U.S., as industry leaders emphasize the deeply integrated North American energy supply and the long timeline required for significant trade shifts.
Fink Phoned Trump Directly to Pitch BlackRock’s Panama Deal
BlackRock, led by Larry Fink, has secured a $19 billion deal to acquire ports on both sides of the Panama Canal, aligning with Trump’s push to regain U.S. influence over the waterway while reducing perceived Chinese control in the region.
US Pauses Auto Tariffs by One Month
The U.S. has granted a one-month tariff exemption for cars imported from Canada and Mexico under USMCA, following discussions with major automakers, while broader reciprocal tariffs are still set to take effect on April 2.
Trump Says US Plans Tax Breaks, Investment in Shipbuilding
The Trump administration is considering tax breaks and new policies to revive U.S. shipbuilding, counter China’s dominance, and reclaim influence over the Panama Canal, while a proposed executive order could impose fees on Chinese ships and fund maritime security initiatives.
