U.S. and Chinese economic indicators are flashing warning signals as the trade war between the world’s two biggest economies heats up.

A gauge of new export orders from China fell in April to its lowest reading since Covid-19 was ravaging the country in 2022, while overall manufacturing activity was the weakest in more than a year, according to new surveys from China’s National Bureau of Statistics.

The WSJ’s Jason Douglas reports that the sharp pullback shows President Trump’s 145% tariffs on Chinese imports are starting to stifle the engine of China’s economy, piling pressure on Beijing to boost stimulus efforts to shore up growth.

At the same time, the U.S. economy contracted in the first three months of the year as businesses rushed to stockpile inventory ahead of the tariffs and consumer spending slowed.

The WSJ’s Harriet Torry writes that U.S. net exports, the difference between what the U.S. imports and exports, reduced headline GDP by nearly 5 percentage points. That was the biggest quarterly drag from net exports on records dating back to 1947.

The combined indicators offer a glimpse into how Trump administration policies are already reshaping global trade.

• The U.S. private sector added 62,000 jobs in April, down from 147,000 in March, according to ADP. (WSJ)
• The eurozone economy grew at a faster pace than the U.S. for the first time in almost three years. (WSJ)
• The volume of Chinese goods packed in containers bound for the U.S. keeps falling. (WSJ)
• The Trump administration is preparing a contingency bailout plan for farmers if they are hurt by escalating trade wars. (WSJ)

U.S. lawmakers are launching the biggest push in decades to revitalize American shipbuilding.

The WSJ Logistics Report’s Paul Berger writes that a bipartisan group of legislators reintroduced a bill to stimulate demand for hundreds of U.S.-built ships and to boost America’s ranks of shipbuilders and sailors.

The SHIPS for America Act includes tax incentives for shipyard improvements and a target to more than triple the number of U.S.-built vessels in international trades.

The chief executive of Hanwha Philly Shipyard, one of the few U.S. yards capable of making large international commercial vessels, said the new policies and funding should create the consistent demand shipbuilders need to make big investments.

Resurrecting American shipbuilding won’t be easy. Each year, U.S. shipyards produce a handful of large commercial ships, compared with hundreds of vessels made by Chinese shipyards.

Hapag-Lloyd posted preliminary revenue of about $5.81 billion for the latest quarter, up from $4.9 billion last year. (WSJ)

Caterpillar expects to face $250 million to $350 million in additional costs this quarter due to the trade war. (WSJ)

Newell Brands expects to benefit amid higher tariffs but warned duties would dent results if left in place for the year. (WSJ)

Canadian Pacific Kansas City logged higher profit and revenue in the first quarter. (Dow Jones Newswires)

Alibaba added a rapid-delivery feature to its shopping platform, its latest attempt to grab a slice of China’s on-demand delivery market. (WSJ)

Cold-storage operator Lineage is acquiring four warehouses from Tyson Foods as part of a $247 million deal. (DBusiness Magazine)

CMA CGM Air Cargo bought the cargo operations of Air Belgium, adding four freighters to its fleet covering Europe, Asia and the U.S. (Journal of Commerce)

U.S. crude imports headed for China in May are likely to be diverted or canceled due to uncertainties surrounding tariffs. (TradeWinds)

Algoma Central commissioned the first of two newly-built product tankers that will be used for service in conjunction with Canada’s Irving Oil. (Maritime Executive)

Seaspan booked six containership newbuilds at Shanghai Waigaoqiao Shipbuilding in China. (Splash 247)

Amazon bought two undeveloped parcels in Enfield, Conn., totaling around 200 acres for $20 million. (Hartford Business Journal)

President Trump signed an executive order requiring commercial driver’s license holders to demonstrate English language proficiency. (The Trucker)

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.