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Tariff Swerves Roil Markets; Shipping Giant Pledges U.S. Investment By Mark R. Long

President Trump's one-month suspension of new 25% tariffs on Mexican and Canadian imports covered under a trade pact battered markets , as the swerving trade policy unnerved investors and strained relations with allies.

About half the imports from Mexico and 38% from Canada are exempt from tariffs under 2020's U.S.-Mexico-Canada Trade Agreement, a White House official said. But WSJ's Chao Deng writes that the reprieve for goods traded duty-free under the USMCA is less straightforward than it might seem . That pact sets forth an intricate and complex set of rules regarding the origins of product components. Trade experts and lawyers are rushing to figure out what goods will still be subject to higher tariffs and which businesses have skin in the game.

About 40% of Canadian imports and a similar level of Mexican imports fell outside USMCA, but had passed through duty-free because the U.S. imposes no tariffs on those products regardless of the supplier country. Those imports include computers, medical equipment, phones and beer. Those goods now face 25% tariffs, White House officials said.

Canada said it wouldn't proceed with $87 billion in retaliatory tariffs later this month, though it left in place $21 billion in duties on some fruits and vegetables, appliances, liquor and other items.

Kroger said it is working to shift its purchasing of produce and other products to avoid the Trump administration's tariffs . (WSJ) The CEO of Brown-Forman says Canadians pulling U.S. spirits off shelves is worse than tariffs. (Dow Jones Newswires) A 30-day breather for the car business from tariffs means more strategizing for automakers , parts suppliers and consumers. (WSJ) Cross-border trucking rates soared ahead of new tariffs on Canada and Mexico. (Reuters) Trucking groups warned that Trump's tariffs threaten to lengthen the freight recession of the past two years. (Trucking Dive)

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Number of the Day Shipping & Politics

French shipping magnate Rodolphe Saadé met President Trump at the White House on Thursday and pledged to invest $20 billion in the U.S. over the next four years as the administration pushes to revive the American maritime sector.

The WSJ Logistics Report's Paul Berger writes that Saadé, the billionaire chief executive of Marseille's CMA CGM, intends to triple the size of the container line's U.S.-flagged fleet, upgrade its U.S. port facilities and create a Chicago airfreight hub , among other moves.

The investments will create 10,000 direct new jobs, Saadé said in an interview, adding most of the announced investment is new money that is being found or reallocated from other areas. It includes $8 billion for containerships, $7 billion for logistics, $4 billion for ports and $1 billion for air cargo, he said.

"We're talking about a massive investment of a shipping company and a logistics provider in a given country," Saadé said. "$20 billion over four years is very strong as a commitment to the U.S."

The commitment comes as Trump presses to resurrect commercial and military shipbuilding in America and to challenge China's dominance of the global maritime industry in ways that threaten profits at the world's largest ocean carriers.

BlackRock's deal to buy control of Panama Canal ports marks a rare U.S. inroad to a strategic sector dominated by Beijing. (WSJ) Quotable Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

There's a new buzzword in sustainability circles when it comes to investing in renewables and clean technologies: resilience .

AI, of all things, may help video calls feel more human .

Big tech platforms are moving toward more automation in ad sales , despite a litany of complaints from marketers.

"Animal spirits" look set to drive a revival in private-equity dealmaking, but the pickup in activity many expect may not be felt equally across the industry. See more in WSJ Pro Private Equity's Special Report on the Year Ahead .

In Other News

Retail trade ticked lower in the eurozone in January, with sales volumes slipping 0.3%. (WSJ)

The European Central Bank cut rates by a quarter point to guard an economy threatened by tariffs. (WSJ)

Thyssenkrupp plans to cut around 1,800 jobs to reduce costs at its automotive technology business. (WSJ)

Macy's expects sales to fall again this year amid consumer uncertainty about tariffs and inflation. (WSJ)

Costco's quarterly revenue missed market forecasts but same-store sales beat expectations. (WSJ)

Gap's CEO sees slow growth ahead due to consumer caution and supply-chain disruptions. (WSJ)

The Japan-based owner of 7-Eleven plans to split its North American convenience-store business into a separate, listed company. (WSJ)

DHL's airfreight volumes climbed 6.8% last year . (Air Cargo News)

Lufthansa Cargo posted record results for the fourth quarter. (The Loadstar)

Sirius Ship Management has acquired navigation electronics and communication company Generalmarine. (TradeWinds)

SM Line said 115 containers were lost, collapsed or damaged on one of its vessels in a Pacific storm. (Maritime Executive)

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

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