For the Week of July 20, 2026:
This Week:
- U.S. imposes 25% tariff on most imports from Brazil
- Ocean shippers abandon traditional peak season strategies
- Ocean freight market begins shifting as capacity grows and demand cools
- U.S. manufacturing holds steady through the second quarter
- LTL carriers continue rebuilding domestic freight networks
U.S. Imposes 25% Tariffs on Brazilian Imports
The United States has finalized a 25% tariff on most imports from Brazil following a Section 301 investigation into the country’s trade practices. The new duties take effect this week and apply broadly across many Brazilian products, although several categories received exemptions to reduce supply chain disruption.
The action reflects the administration’s continued use of Section 301 investigations to address perceived unfair trade practices while encouraging further negotiations. Importers sourcing products from Brazil should review their tariff exposure, confirm product eligibility for exemptions, and evaluate potential impacts on landed costs and sourcing strategies.
JMR Takeaway: Companies importing from Brazil should immediately review product classifications, tariff exposure, and available exclusions before the new duties affect future shipments.
Ocean Shippers Rethink Traditional Peak Season Strategies
Ongoing tariff uncertainty and geopolitical disruptions are changing how importers approach peak season planning. Rather than following traditional shipping calendars, many companies are moving freight earlier, diversifying transportation strategies, and building inventory ahead of potential policy changes.
This shift has created a less predictable freight market, with demand fluctuating based on trade policy announcements instead of seasonal buying patterns alone. Carriers and shippers alike are adapting to a market where flexibility has become just as important as cost.
JMR Takeaway: Peak season planning is becoming increasingly driven by policy changes rather than historical demand cycles. Flexible transportation strategies remain essential.
Ocean Freight Market Shows Signs of Turning
Ocean shipping capacity continues increasing as carriers add vessels and restore service, while freight demand has begun showing signs of cooling after months of frontloaded imports. As the supply-demand balance shifts, industry analysts believe the market may be entering a new phase.
Although spot rates remain elevated on many trade lanes, pricing pressure is beginning to ease as available capacity improves. Carriers are expected to continue adjusting networks and capacity to maintain market balance if demand softens further.
JMR Takeaway: Ocean freight markets are becoming more balanced, but carriers are likely to actively manage capacity to stabilize pricing.
U.S. Manufacturing Holds Steady
U.S. manufacturing output was largely unchanged in June, although second-quarter production posted stronger overall growth. Continued investment in industrial production, combined with relatively stable demand, helped support manufacturing activity despite ongoing economic uncertainty.
Manufacturers continue balancing higher input costs, labor challenges, and evolving trade policies while maintaining production levels. Many companies remain cautiously optimistic as supply chain conditions continue improving compared to recent years.
JMR Takeaway: Manufacturing activity remains resilient, but businesses continue monitoring costs, trade policy, and demand trends as they plan for the second half of the year.
LTL Carriers Continue Expanding Networks
Less-than-truckload (LTL) carriers continue expanding their service networks following years of industry consolidation and capacity reductions. Investments in terminals, equipment, and network optimization are helping carriers rebuild coverage while improving service reliability.
Despite this progress, the industry has not yet fully replaced capacity lost during previous market disruptions. Carriers remain focused on disciplined growth while balancing customer demand, labor availability, and profitability.
JMR Takeaway: LTL capacity continues improving, but network expansion remains gradual as carriers prioritize long-term operational stability.
Stay Ahead of Supply Chain Changes
As supply chain conditions continue to evolve, understanding the impact on your operations is critical. For immediate questions or guidance, contact our team.
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