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Tariffs Draw Reprisals; Trump Targets Shipbuilding Revival; BlackRock Buys Panama Canal Ports By Mark R. Long

The first day of new 25% tariffs on Mexico and Canada brought plans for retaliatory duties on American products from both nations, whipsawed global markets and prompted major companies to warn of higher prices for consumers and tougher competition for U.S. firms.

The U.S. also introduced an additional 10% tariff on Chinese imports, on top of a levy imposed a month ago and other existing duties. This brought swift retaliation from Beijing, which slapped tariffs on U.S. agricultural goods, filed a lawsuit with the World Trade Organization and took other actions against American companies.

As WSJ's Konrad Putzier and Justin Lahart write, these moves could profoundly reshape relations between the U.S. and its two biggest trading partners , upending a decadeslong effort to expand free trade among allies. They could also drag on a U.S. economy already dealing with mass federal job cuts, reduced government spending and immigration curbs, while boosting prices on everything from SUVs to guacamole.

Even if Trump agrees to a deal to "meet in the middle" with Mexico and Canada, as Commerce Secretary Howard Lutnick suggested was possible Tuesday , the actions could continue to weigh on growth, with consumers on edge and businesses constrained in their ability to plan investments and hiring.

Trump's tariff threats became a reality for America Inc. (WSJ) The Trump administration delayed a crackdown on the popular de minimis trade exemption. (WSJ) The International Chamber of Commerce warned the world economy could go into a recession unless the U.S. pulls back on its new tariffs. (WSJ) Tariffs could raise grocery prices . (WSJ) Toy makers are worried about the impact of new tariffs. (WSJ) Bulker and container stocks fell sharply Tuesday. (TradeWinds) CONTENT FROM: PENSKE LOGISTICS Gain the Big Picture. Gain Ground with Penske Logistics.

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Quotable Government & Regulation

The Trump administration is readying an executive order aimed at reviving the languishing U.S. shipbuilding and maritime industries, while curbing Chinese dominance in shipyards and at sea.

The WSJ Logistics Report's Paul Berger writes that the order includes 18 measures ranging from raising revenue from fees on Chinese-built cranes and ships entering the U.S. to setting up a new office at the National Security Council to bolster the domestic maritime sector.

A draft summary reviewed by the Journal also includes measures like raising wages for nuclear-shipyard workers and instructions for Elon Musk's Department of Government Efficiency to review government procurement processes, including the Navy's. The document is labeled as a draft and could change.

President Trump, in a speech to Congress Tuesday night , said his administration wants to resurrect commercial and military shipbuilding in America and would create a new Office of Shipbuilding in the White House. Noting the U.S. had fallen behind in shipbuilding, Trump said, "We're going to make them very fast, very soon." Transportation

Ports on both sides of the Panama Canal will come under U.S. corporate ownership after a group of investors led by BlackRock reached a $22.8 billion deal with Hong Kong's CK Hutchison.

WSJ's Costas Paris, Jack Pitcher and James T. Areddy write that foreign-owned ports on each side of the canal have been flagged as a threat by the Trump administration, even though Panama controls the canal itself . BlackRock, the world's biggest asset manager, has briefed the White House and Congress on the deal, people familiar with the matter said.

The deal is the biggest infrastructure acquisition ever for BlackRock. Hutchison's Panama Ports company has been the only firm that manages terminals on both sides of the canal: Balboa on the Pacific entrance and Cristóbal on the Atlantic.

The deal appears to mark a retreat from international port operations by Hutchison, which is controlled by 96-year-old Li Ka-shing, one of Asia's wealthiest people.

Number of the Day In Other News

The eurozone's job market continued to show resilience at the start of the year. (WSJ)

The revival of nuclear power is bringing back the old problem of disposing of the waste. (WSJ)

Abu Dhabi's Adnoc and Austria's OMV will combine their petrochemical businesses and acquire Canada's Nova Chemicals to form a giant with a combined value of about $60 billion. (WSJ)

Walgreens Boots Alliance is closing in on a deal with private-equity firm Sycamore Partners that would take the drugstore chain private for around $10 billion. (WSJ)

Seven & i Holdings' founding family said it will pull its proposal to privatize the Japanese owner of the 7-Eleven convenience-store chain. (WSJ)

Albertsons CEO Vivek Sankaran is stepping down . (WSJ)

Private-label manufacturer TreeHouse Foods is seeing consumers cut back . (WSJ)

WK Kellogg will spend $200 million on its ongoing supply chain modernization effort this year. (Supply Chain Dive)

CMB.Tech bought John Fredriksen's entire stake in Golden Ocean Group in a $1.18 billion deal. (TradeWinds)

France's CMA CGM signed up for a fresh series of containership newbuilds in China. (Splash 247)

E-commerce software provider Swap raised $40 million in a Series B round . (PYMNTS)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

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

(END) Dow Jones Newswires

March 05, 2025 07:02 ET (12:02 GMT)

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