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Crunch Time for Tariff Talks; UPS Offers Buyouts to Drivers; the Tax Bill's Upshot for Companies By Mark R. Long

President Trump this week is looking to build on the momentum of recent policy wins by tackling a series of elusive trade agreements ahead of his self-imposed deadline.

A 90-day pause on so-called reciprocal tariff rates that Trump imposed in April expires on Wednesday. Late Sunday he said on Truth Social that "tariff letters and/or deals" will be delivered starting today. He also threatened an additional 10% levy on countries aligned with the Brics nations, including Brazil, Russia, India and China. That followed a weekend summit where the bloc jointly voiced concerns about the unilateral imposition of tariffs. Last week, Trump said new tariff rates could range from 10% to 70% , with about a dozen letters set to go out Monday and payments due by Aug. 1, the WSJ's Brian Schwartz and Gavin Bade write. These letters would follow months of complex negotiations . Among other sticking points, the president has refused to budge on his industry-specific tariffs, including those targeting foreign automakers.

Treasury Secretary Scott Bessent said on CNN's "State of the Union" that the tone of the letters might not be a declaration of immediate tariffs, but could feature another deadline for deals to avoid the duties announced in April.

China is reviewing and approving applications for exports of controlled items to the U.S., as Beijing and Washington speed up the implementation of their trade framework. (WSJ) The U.S. has lifted some curbs on exports of chip-design software to China, according to three companies that say they are working to restore access to recently restricted products. (WSJ) A tariff deal with Vietnam emphasizes a White House priority: Slamming shut any backdoor routes for Chinese goods to enter the U.S. (WSJ) The U.S.-Vietnam trade agreement looks positive for the Southeast Asian country and region. But with details scarce and uncertainty high, analysts say don't breathe easy just yet . (WSJ) The share of Canada's exports destined to its biggest market, the U.S., fell to 68.3% in May , the lowest in decades outside of the pandemic. (WSJ) Thailand is proposing to boost bilateral trade and cut its trade surplus with the U.S. in an effort to avert a 36% tariff threatened by the Trump administration. (Bloomberg)

The U.S. trade deficit expanded in May, rebounding modestly as American exports declined. The White House's negotiation stances have sent monthly trade numbers on a rocky course this year , the Journal's Matt Grossman and Anthony DeBarros report. Imports soared and the deficit ballooned to start 2025 as companies and shoppers raced to move foreign goods into the U.S. before the tariffs landed. That trend abruptly reversed in April as trade restrictions tightened.

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Quotable Parcel Delivery

United Parcel Service is offering buyouts to delivery drivers for the first time in its 117-year history. Stagnant parcel volumes, rising labor costs and a long slump in the company's stock price have the company seeking cost savings , the WSJ's Esther Fung writes. UPS employs around 330,000 full- and part-time delivery drivers, clerks and package handlers represented by the International Brotherhood of Teamsters. Full-time drivers are eligible for a buyout, the company said. UPS and the union declined to say how many full-time drivers UPS employs. The company said it decided to offer buyouts to its drivers-among the highest-paid in the U.S.-because it is navigating "an unprecedented business landscape" and reorganizing its network. Winners & Losers

U.S. manufacturers, big retailers such as Macy's and Kohl's, oil companies and defense contractors are among the companies that could gain from the tax-and-spending megabill Trump signed into law on July 4 . Makers of electric vehicles and renewable-energy developers get the short end of the stick, with subsidies and special tax credits set to evaporate, according to a Wall Street Journal roundup of the winners and losers from the bill . A provision ending the de minimis rule allowing packages worth $800 or less to be imported duty-free from countries other than China and Hong Kong could hit direct-to-consumer brands, as well as FedEx, UPS, DHL and cargo-carrying airlines that have benefited from a boom in e-commerce. Cuts to the nation's food-stamp program bode poorly for packaged-food companies, as SNAP recipients account for nearly 9% of grocery spending on food.

Number of the Day In Other News

The U.S. added 147,000 jobs in June , the Labor Department reported, above the gain of 110,000 expected by economists. The unemployment rate fell to 4.1% from 4.2%. (WSJ)

The headline U.S. jobs number hides a stark reality: Many private employers aren't hiring anymore amid high interest rates, a crackdown on immigration and tariff uncertainty. (WSJ)

A private gauge of China's services sector activity expanded in June, but at a softer pace despite efforts by businesses to attract new customers. (WSJ)

German factory orders fell 1.4% in May from the previous month, though foreign orders held up, suggesting U.S. firms continue to stockpile goods amid tariff concerns. (WSJ)

Russia's sanctions-defying economy is coming back down to Earth , with manufacturing activity declining, consumers tightening their belts, inflation remaining high and the budget under strain. (WSJ)

Food prices rose in June as higher meat, vegetable-oil and dairy prices offset lower cereal and sugar prices, the Food and Agriculture Organization of the United Nations said. (WSJ)

Taiwan Semiconductor Manufacturing is delaying construction of a second plant in Japan as it pours funds more quickly into U.S. expansion ahead of potential U.S. tariffs. (WSJ)

Air France-KLM said it would increase its stake in Scandinavian Airlines, or SAS, to 60.5% from 19.9% by acquiring the full stakes held by Castlelake and Lind Invest. (WSJ)

French regulators fined fast-fashion retailer Shein more than $40 million for what they deemed to be misleading practices on prices and environmental claims. (WSJ)

The crew of a Greek-operated bulk carrier abandoned ship in the Red Sea as the vessel took on water after getting hit by a missile that security sources said was fired by Yemen's Houthi rebels. (Lloyd's List)

Ocean carriers have cut their peak-season targets to increase rates to ship containers on the India-U.S. route as demand softens. (Journal of Commerce)

U.K.-based forklift-tire provider Interfit acquired Chicagoland Industrial Supply, which does business as Industrial Tire Solutions. (DC Velocity)

Western Hospitality Partners scrapped a plan to build a $6 billion data center in Kentucky following local pushback over water and power use. (Louisville Business First)

A Chinese vessel called Anhui that is the world's first to be powered solely by ammonia completed its maiden voyage. (China Daily)

The Wilson Locks and Dam on the Tennessee River was reopened to navigation after being closed in September for repairs. (Waterways Journal)

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

July 07, 2025 07:05 ET (11:05 GMT)

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