This week:
- Trump tariffs blocked, appeals court stays order, leaving US importers feeling uncertain
- Major ocean carriers launch or resume trans-Pacific services to US ports amid increased demand
- Canada Post issues final offer to CUPW, union unlikely to accept deal, delivery numbers plummet
- Cargo thieves increasingly targeting electronics and other high-end goods as crisis continues
Battle Over Trump Tariffs Erupts in Federal Courts, Importers Face More Uncertainty
A whirlwind 24 hours of legal battles began last Wednesday over US President Donald Trump’s authority to impose tariffs unilaterally. The US Court of International Trade ruled on May 28 that the President had exceeded his authority by implementing his reciprocal tariff policy and other levies since returning to office in January. However, on May 29, a federal appeals court issued a stay on the order.
The Court of International Trade’s decision effectively nullified all tariff rate changes Trump has made in his second term. While this news seemed to offer a reprieve for US importers that have endured significant increases in import duties this year, the US Court of Appeals for the Federal Circuit in Washington, DC, paused the lower court’s decision, allowing Trump’s tariffs to remain in place for now. The next hearing on the matter is set for next Monday, June 9.
At dispute is President Trump’s use of emergency powers to impose tariffs without Congressional approval. Although the US Constitution grants Congress the sole power to levy taxes and duties, Trump has invoked the International Emergency Economic Powers Act (IEEPA) to impose tariffs via executive order. This includes a 10% baseline tariff on nearly all US trading partners, as well as the President’s reciprocal tariff policy, which has resulted in duties reaching as high as 145% on imports from China.
In its ruling, the Court of International Trade said, “The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.” Before the appeals court halted it, this decision offered a glimmer of hope for businesses struggling with higher tariffs. However, with the final decision still pending, US importers are facing increased uncertainty.
The battle in federal courts over Trump tariffs comes at a critical time for these importers, as the peak shipping season ahead of the winter holidays typically begins in June. Now, shippers must make some tough decisions, according to logistics consultant Kevin Parkerson.
Speaking to the Journal of Commerce (JoC), Parkerson said smaller shippers may be debating whether to expedite or delay shipments. He said larger and more financially resilient retailers are maintaining their import strategies to ensure goods remain on shelves, regardless of the tariff rates.
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Carriers Launch New Trans-Pac Services in Response to Rising Demand
Major container lines Maersk and Hapag-Lloyd are launching a new express trans-Pacific service to the US West Coast, and Mediterranean Shipping Co. is considering restarting its suspended East Coast service. These moves reflect a growing confidence in Asia-to-US trade demand following the Trump administration’s temporary pause of higher tariff rates on China.
In statements released last week, Maersk and Hapag-Lloyd announced that their Gemini Cooperation vessel-sharing agreement will introduce a new express route connecting China and South Korea directly to the West Coast. The service will be marketed as TP9 by Maersk and WC6 by Hapag-Lloyd.
The inaugural voyage is scheduled for June 24, departing from Xiamen, China, aboard the 4,622-TEU vessel Rhone Maersk.
The introduction of the new Gemini service follows a volatile two-month period in the trans-Pacific shipping industry. Ocean carriers initially reduced capacity after Trump’s tariffs on Chinese goods led to a significant decline in container bookings. However, capacity was rapidly restored shortly after the administration announced last month it would temporarily reduce tariff rates on Chinese imports for 90 days.
Canada Post’s “Final Offer” Rejected by Union, Prolonging Labor Dispute
The Canadian Union of Postal Workers (CUPW) has rejected what Canada Post calls its “final offer” for new labor contracts, thereby prolonging the already protracted negotiations. The master contract between the CUPW and Canada’s national postal carrier expired on May 23, but so far, the union has only implemented an overtime ban rather than a full work stoppage.
Canada Post offered its latest proposal last Wednesday. The carrier’s concessions include the addition of signing bonuses and the removal of mandatory overtime.
However, Canada Post did not yield on two critical sticking points. It offered a 13.59% compounded wage increase over four years, which falls short of CUPW’s demand for a 19% pay raise. Furthermore, Canada Post wants to create new part-time positions to support weekend deliveries, a move the union has opposed since contract talks began.
CUPW National President Jan Simpson accused Canada Post of “playing hardball,” as the latest offer is virtually identical to proposals submitted on May 21. “Canada Post says this was its ‘final offer.’ ‘But this fight is far from over,” Simpson said in a statement released to the media.
The ongoing labor dispute is exacting a heavy toll on Canada Post’s operations. According to data released by the carrier on Wednesday, delivered parcel volumes have decreased 65% year-over-year.
Cargo Thieves Targeting Electronics, Apparel, and Other High-Value Goods
Over the first five months of this year, supply chain stakeholders, industry observers, and lawmakers alike have spoken out about the ongoing cargo theft crisis in the US. The topic resurfaced this week as multiple news outlets reported on industry data indicating that cargo thieves are increasingly targeting high-value goods.
New Jersey-based logistics security firm CargoNet released its annual Supply Chain Risk Trends Analysis report earlier this year. Among its findings are a 27% increase in theft activity in 2024 compared to the previous year, as well as data indicating that cargo thieves prefer electronics, auto parts, high-end apparel, and other high-value goods.
“Cargo theft is growing increasingly sophisticated, as organized groups leverage greater resources and insider information to target high-value shipments,” CargoNet said in an infographic published May 28 by the American Journal of Transportation.
“These organized groups are interested in high-value goods that are both valuable and easy to resell,” CargoNet said in the infographic.
Earlier this year, multiple supply chain executives and stakeholders testified before Congress about the cargo theft crisis and the massive losses associated with it. In April, a bipartisan group of lawmakers introduced the Combating Organized Retail Crime Act of 2025 (CORCA), which would streamline law enforcement efforts and enable federal prosecutors to seek harsher penalties in cargo theft cases. However, CORCA has thus far only been referred to the House Judiciary Committee and has yet to be considered by the full House or Senate.
