This week’s logistics landscape is being reshaped by intensifying trade friction and global repositioning. The U.S. has officially ended duty-free treatment for low-value Chinese imports under the de minimis exemption, introducing tariffs up to 145%—a move already causing a projected 35% drop in cargo volumes at major West Coast ports. U.S. manufacturers are feeling the strain, with April’s Purchasing Managers’ Index falling to 48.7 as costs rise and supply chains falter. In response, the bipartisan SHIPS Act aims to strengthen America’s maritime posture by adding 250 U.S.-flagged vessels over the next decade. Meanwhile, the EU is attempting to stabilize relations with Washington through a proposed €50 billion increase in U.S. imports, while China is softening its stance with new tariff exemptions on selected American products. These parallel developments underscore the growing complexity of global trade—and the need for logistics providers and shippers to proactively adjust sourcing strategies, diversify freight routes, and reinforce resilience against mounting geopolitical pressures.
Weekly Freight Report: May 01, 2025
May 1st, 2025
Bipartisan SHIPS Act Aims to Counter China’s Maritime Dominance with 250-Ship Fleet Expansion
The bipartisan SHIPS Act proposes a major expansion of the U.S. commercial fleet to reduce reliance on foreign shipping—especially China—and strengthen domestic maritime infrastructure, signaling long-term impacts for importers, carriers, and U.S.-based supply chains.
EU to Present Trade Proposals to US Negotiators Next Week
The EU plans to present trade proposals to the U.S. next week focused on reducing barriers and boosting cooperation, while preparing retaliatory measures if talks fail—adding uncertainty for transatlantic trade and key sectors like steel, autos, and technology.
China Develops Exemption List for U.S.-Made Products Amid Trade War
China is quietly granting tariff exemptions on select U.S. goods—like microchips, pharmaceuticals, and ethane—to ease trade war pressures, offering limited relief for key U.S. exporters amid ongoing supply chain uncertainty.
Trade War Leads CPKC Railway to Lower 2025 Guidance
CPKC has lowered its 2025 earnings outlook due to U.S. trade policy uncertainty, signaling potential disruption for cross-border freight flows between Canada, the U.S., and Mexico—especially in automotive, steel, and agriculture sectors.
Uneasy West Coast Ports Watch as First Signs of Trade War with China Emerge
U.S. West Coast ports are bracing for significant disruptions as escalating tariffs on Chinese imports lead to a sharp decline in shipments, with the Port of Los Angeles anticipating a 35% drop in cargo volumes, prompting concerns over supply chain stability and potential economic repercussions.
May 2 Brings End to Duty-Free Imports from China to U.S.
Effective May 2, 2025, the U.S. will eliminate the de minimis exemption for Chinese imports, ending duty-free treatment for packages valued under $800 and imposing tariffs up to 145%, a move that significantly impacts e-commerce platforms like Temu and Shein, raises costs for consumers, and reshapes global supply chains.
We’re Headed in the Wrong Direction: Tariffs Drive Up Prices, Hurt Output: PMI
In April 2025, U.S. manufacturing activity contracted for the second consecutive month, with the ISM Purchasing Managers’ Index falling to 48.7, as escalating tariffs under President Trump’s administration led to increased costs, disrupted supply chains, and declining export orders, signaling mounting challenges for the sector.
