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Building a 'Golden Age' Economy; Canada's Fentanyl Supply Chain By Paul Page

President Trump's whirlwind return to office has brought into focus his vision for what he calls a new "Golden Age" for America. A deluge of executive orders and directives in the administration's first week shows a drive toward a more self-reliant economy that makes more products at home, pumps out more of its own oil and gas and employs more U.S. workers.

The WSJ's David Uberti writes that in threatening tariffs that could upend some U.S. companies' supply chains and other countries' entire economies, Trump is likening his approach to that of President William McKinley, a Republican leader during an era known as the "Gilded Age." That was a period of rapid industrialization that created tremendous wealth for America, but was also marked by rampant inequality.

Trump's made-in-America push in some ways marks an acceleration of Biden-era policies to boost domestic manufacturing in the face of increasingly assertive Chinese industries. The Biden administration targeted tariffs and pledged support for renewable energy, chips manufacturing and infrastructure, efforts that would redirect many supply chains.

Trump has promised an even more expansive, fossil-fuel propelled effort to shield the U.S. from foreign competition. But Trump's mixed messages on how far tariffs will go have also left economists deeply uncertain about the potential impact on an economy that has vaulted ahead of its rich peers.

President Trump backed off a threat he had made to impose 25% tariffs and economic sanctions on Colombia, which the White House said had met its demands to repatriate migrants. (WSJ) Japan's Fujifilm plans to spend more than $640 million to increase production of semiconductor materials in the U.S., Japan and elsewhere. (Nikkei Asia) Stellantis plans to reopen a shuttered Illinois plant to build a new pickup truck. (Industry Week) The ZM Trucks unit of Japanese electric-trucks maker ZO Motors will open its first North American factory in Fontana, Calif. (Business & Facilities) CONTENT FROM: PENSKE LOGISTICS Gain X-Ray Vision. Gain Ground with Penske Logistics.

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Learn More Quotable Economy & Trade

Canada is coping with the fallout from its growing profile as a hub for the global trade of the deadly synthetic opioid fentanyl. Canadian officials have long played down the country's role compared to China's position as a supplier of the drug's raw ingredients and Mexico's as a manufacturer and trafficker. The WSJ's Vipal Monga reports Canada's place in the fentanyl global supply chain has become a matter of urgent concern , with signs that more of the product is leaving the country and President Trump making Canadian fentanyl exports a major issue.

Evidence from Canadian law-enforcement investigations shows that transnational organized-crime groups, including ones linked to Mexican cartels, are increasingly making drugs in Canada and exporting them to the U.S., Europe and Australia. Drug seizures at the southern U.S. border are far greater, but Canada's growing role has given Trump new leverage in his threats over trade and security.

Number of the Day In Other News

Sales of existing homes in the U.S. fell last year to the lowest level since 1995. (WSJ)

U.S. economic activity expanded at a slower pace at the start of the year. (WSJ)

A measure of business activity across the eurozone showed expansion this month for the first time since August. (WSJ)

Brad Jacobs-led building-products distributor QXO plans to launch a hostile takeover bid for Beacon Roofing Supply. (WSJ)

Activist investor Ancora is preparing to wage a proxy battle at U.S. Steel and seek to oust the company's CEO. (WSJ)

Canada will provide extraordinary financing to Canada Post to avoid insolvency at the state-owned mail service. (WSJ)

Canada is reviewing its business ties with Amazon's cloud-computing unit following the company's decision to shut down its warehouses in Quebec. (WSJ)

European antitrust regulators conditionally approved International Paper's $7.2 billion acquisition of London-listed DS Smith. (WSJ)

Rio Tinto's first-quarter iron-ore shipments will be affected by the impact of a tropical cyclone on its rail and port operations in Australia. (WSJ)

Singapore's factory output rose 10.6% in December , the sixth straight month of expansion. (Straits Times)

Tata Electronics took a controlling 60% stake in Indian plants operated by Taiwan-based Apple supplier Pegatron. (Economic Times)

Maersk Line will continue to divert ships around the Red Sea region until long-term safety for vessels is more certain. (Reuters)

Two ship registries are dropping 114 tankers following the widening of sanctions against the Russian trading shadow fleet. (TradeWinds)

Bankrupt U.K. shipyard Harland & Wolff owes millions of dollars to suppliers who fear they won't be paid in a takeover by Spain's Navantia. (Financial Times)

Airbus closed its heavylift cargo business 18 months after launching the operation. (Journal of Commerce)

Supply chain visibility startup Tive raised $40 million in a Series C funding round. (TechCrunch)

WH Smith is in talks to sell its iconic British stores. $(BBC.AU)$

About Us

Paul Page is editor of WSJ Logistics Report. Reach him at [paul.page@wsj.com].

Follow the WSJ Logistics Report team: @PaulPage , @bylizyoung and @pdberger . Follow the WSJ Logistics Report on X at @WSJLogistics .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

January 27, 2025 07:04 ET (12:04 GMT)

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