A tariff exemption that fueled the growth of bargain sites Shein and Temu, as well as smaller online retailers, ended at one minute after midnight today.

The demise of the “de minimis” exemption on packages of $800 or less for Chinese goods threatens the business models of online retailers that deliver millions of products each year to U.S. consumers, the WSJ’s Liz Young and Shen Lu write. President Trump ordered the end of the policy as part of his wider tariff blitz on China. The change leaves most shipments subject to the new 145% base tariff on all Chinese products, as well as extra levies based on the nature of the goods. In addition, steep fees on packages with Chinese merchandise shipped via the international postal network also kick in.

Use of the de minimis provision has skyrocketed in recent years with a surge of goods from Temu and Shein, which both started raising prices last week to compensate for their higher costs. Other e-commerce sellers say they can’t afford the steep tariffs. More than 80% of executives in one survey said eliminating de minimis would threaten their companies’ survival.

• The pre-tariff rush to get goods to the U.S. has distorted global trade patterns and economic data, and it isn’t over yet. (WSJ)

The world’s second-largest economy is showing its first big signs of damage from the trade war, with a drop in export orders and the weakest production at Chinese factories in more than a year.

The Journal’s Lingling Wei and Raffaele Huang write that, despite officials in Beijing playing down evidence of hardship, plunging trade across the Pacific is leading to production halts and threatening to undermine job security for millions of Chinese people. The trade war is hitting American businesses and raising U.S. inflationary pressure and recession risks, but China’s intense focus on exports means the pain there is likely to go deeper. The export boom helped China avert a financial meltdown when a property bust weakened investment and consumption. The tariffs mean the Chinese economy is now facing two major drags at the same time, one economist said.

• Beijing-backed social media accounts say U.S. officials have reached out to Chinese counterparts through multiple channels to discuss trade. (WSJ)

Apple moved to allay investor worries about the price of tariffs on its operations by saying most of the devices shipped into the U.S. in the quarter ending in June will come from India and Vietnam, not China.

The WSJ’s Rolfe Winkler reports that CEO Tim Cook forecast the tariffs would add $900 million to the same quarter’s costs, a figure he suggested could grow in future periods. The company was among the hardest-hit because of its exposure to China, where most of its devices are assembled. Apple was just one of the major U.S. corporations addressing the effects of tariffs as they reported earnings Thursday. Amazon predicted a strong second quarter after posting profit and sales above Wall Street forecasts, but shares fell as the lower ends of its forecasts would fall below analyst expectations.

Harley-Davidson withdrew its sales and profit forecast for the year on uncertainty over tariffs and the economy, and Hershey said it expects to take a hit from tariffs of up to $20 million in the current quarter. Meanwhile, Kleenex maker Kimberly-Clark said it is investing $2 billion to expand its U.S. manufacturing capabilities over five years, even as it cut its profit forecast.

• U.S. manufacturing edged further into contraction in April, reflecting deepening trade concerns. (Dow Jones Newswires)
• More than half of Japan’s major auto-parts makers said in a survey that they are considering raising prices due to tariffs. (Nikkei Asia)

General Motors said it would pull back on spending and increase production at its U.S. factories as it forecast $4 billion to $5 billion in tariff-related costs would wipe out up to a quarter of its profit this year. 

Japan’s central bank halved its growth forecast for the nation’s economy as U.S. tariffs start to bite. (WSJ)

U.S. home builders are piling on discounts as they struggle to entice buyers for the key spring selling season. (WSJ)

The Trump administration reached a deal with Ukraine giving the U.S. access to its mineral wealth. (WSJ)

McDonald’s regulars are reducing their fast-food trips, fueling concerns about economic malaise. (WSJ)

Rolls-Royce reaffirmed its guidance, citing solid performance across all divisions despite global tariff uncertainties. (WSJ)

Chinese electric vehicle makers such as BYD and XPeng posted strong April sales on robust domestic demand. (WSJ)

Bombardier reinstated its full-year guidance as it gained clarity on tariffs after suspending its outlook earlier this year. (WSJ)

Kohl’s fired its CEO for a conflict of interest after finding he funneled business to a romantic partner. (WSJ)

Canadian National Railway logged higher quarterly earnings despite a volatile macroeconomic environment. (Dow Jones Newswires)

The U.S. House voted to rescind the 2023 approval of California's plans to require a rising number of zero-emission heavy-duty trucks. (Reuters)

Aurora Innovation launched its commercial self-driving trucking service in Texas. (Journal of Commerce)

C.H. Robinson Worldwide posted higher-than-expected quarterly earnings on firmer truckload pricing and market share gains. (Journal of Commerce)

Euroseas spinoff Euroholdings has started a review of strategic options for its business. (Splash 247)

Yemen’s Houthi militants are threatening violence against ships seeking to leave Ras Isa port. (Lloyd’s List)

The U.S. Coast Guard and Customs and Border Protection are increasing scrutiny of containers at the Port of New York and New Jersey. (Maritime Executive)

Mack Trucks will offer a battery-electric version of its Mack Pioneer highway truck. (The Trucker)

• Carbon-removal credits are one of the few ways companies can decarbonize, but so far demand has remained limited to just a handful of buyers.
• Getting a startup on its feet after a cyberattack can cost a fortune. More often than not, investors get stuck with the bill.
• Tariff uncertainty and geopolitical turbulence have boosted interest in private-credit investment.
• Brands like Mastercard and PepsiCo are shaking up their Pride spending, with some citing political pressure and economic uncertainty.

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.