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Tariff Costs Vex U.S. Importers; Chinese Ire Rises Over Ports Deal By Mark R. Long

An extra $20,000 for stuffed animals. $50,000 for a flat tire. A surprise $850,000 on orders of lawn furniture and garden supplies. That is the price of new tariffs for three U.S. businesses that depend on imports.

The WSJ Logistics Report's Liz Young and Paul Berger describe how the operations of these American importers and many others have been thrown into disarray by the Trump administration's on-again, off-again approach to trade policy . Careful planning isn't enough to spare them from tens of thousands of dollars in unexpected costs.

Business owners and logistics executives say any delay-from a longer-than-expected ocean voyage from China to truck trouble in Mexico-can make the difference between having to pay thousands in new import duties. Other businesses that tried to get ahead of possible new tariffs now sit on stockpiles of goods and raw materials, tying up capital earmarked for investment.

Cross-border trade between Mexico and the U.S. plummeted the day the tariffs went into effect and hasn't recovered since, according to one of the world's largest freight forwarders. Factories in Canada and Mexico are seeing wild swings in purchasing, and stocks of finished goods in both countries rose at their fastest pace in years before dropping in February after U.S. importers stocked up ahead of the tariff deadline.

The Trump administration explored a simplified plan for reciprocal tariffs. (WSJ) CONTENT FROM: PENSKE Gain Intel. Gain Ground with Penske.

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Port Politics

Chinese discontent over CK Hutchison's sale of Panama Canal ports to BlackRock reaches all the way up to leader Xi Jinping, who is angry the Hong Kong conglomerate didn't seek Beijing's approval in advance.

People close to decision-making in the Chinese capital tell the Journal's Lingling Wei, Rebecca Feng and Raffaele Huang that the Xi leadership had originally planned to use the Panama-port issue as a bargaining chip in negotiations with the Trump administration , only to see the rug pulled out from under it.

Trump repeatedly has called for reasserting U.S. control over the canal and celebrated the BlackRock deal, turning Panama into a symbol of the two nations' contest for global influence. Xi sees it the same way, his ire suggests. Authorities such as the State Administration for Market Regulation and Ministry of Commerce were told to review the deal and see what Beijing can do to hinder it, a person familiar with the matter said.

Taiwan's military says it needs support from the U.S. to deter China. (WSJ) WSJ Video: How Trump plans to take back the Panama Canal Number of the Day In Other News

Federal Reserve Chair Jerome Powell faces a double threat of economic chaos and political hostility. (WSJ)

Inflation in Canada shot up to 2.6% in February, well above the central bank's target. (WSJ)

German lawmakers approved hundreds of billions of euros in spending on defense and infrastructure. (WSJ)

General Motors will use Nvidia artificial-intelligence technology in its factories and next-generation vehicles. (WSJ)

Procter & Gamble has overtaken Unilever by doubling down on its biggest brands and improving them. (WSJ)

Specialty-glass maker Corning raised its financial guidance and targets. (WSJ)

Siemens will cut more than 6,000 jobs in its automation and electric-vehicle-charging units. (WSJ)

China's BYD said its new charging technology can provide 400 kilometers of range with five minutes of charging. (WSJ)

France's Bollore said net income rose following the sale of its logistics business. (WSJ)

Wabtec agreed to acquire Sweden's Dellner Couplers from investment group EQT in a deal that values the train-connection-system maker at about $972.2 million. (Dow Jones Newswires)

Trans-Atlantic air-cargo demand is surging ahead of the April 2 deadline for new U.S. tariffs on Europe. (Journal of Commerce)

U.S. attacks on Yemen's Houthis and Israel's resumption of war in Gaza will further delay the return of container lines to the Red Sea. (ShippingWatch)

Japan's Mitsui OSK Lines contracted with South Korea's Samsung Heavy Industries for two new very large ethane carriers . (Splash 247)

Spot rates for shipping liquefied natural gas have risen from historic lows , but remain weak. (Lloyd's List)

Volkswagen plans to sell up to a 2.2% stake in commercial-vehicle maker Traton. (Reuters)

The American Chamber of Commerce said Japanese nontariff barriers in technology, autos and pharmaceuticals are key hurdles to trade . (Nikkei Asia)

Forever 21 said U.S. de minimis tariff exemptions created unfair competition that contributed to its latest bankruptcy filing. (The Loadstar)

Belgian industrial-storage and automation company Stow Group will open a new production facility in the U.S. (DC Velocity)

J.M. Smucker is dividing its supply chain and manufacturing divisions into separate organizations. (Supply Chain Dive)

American Airlines picked Unilode to provide unit-load-device management services. (Air Cargo News)

The United Steelworkers ratified a four-year agreement with Canadian Pacific Kansas City for 600 clerical and intermodal workers in Canada. (Progressive Railroading) 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 19, 2025 07:03 ET (11:03 GMT)

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