The Trump administration is expected to propose that half the components and materials in an automobile come from U.S. sources to qualify for lower tariffs under a restructured North American trade pact, according to people familiar with the plans.

The WSJ’s Gavin Bade, Santiago Pérez and Christopher Otts write that the rule would greatly increase the amount of U.S. content–measured by dollar value–required in cars made under the U.S.-Mexico-Canada Agreement. The USMCA currently requires three-quarters of a vehicle’s materials to come from North American sources, but has no U.S.-specific content requirement.

The new proposal was prepared ahead of negotiations over how to restructure the agreement, which President Trump signed in 2020 and is up for review this year. A U.S. delegation was in Mexico City last week for a first round of formal talks on the pact. The U.S. team is also expected to propose increasing the amount of North American content that would be required in such vehicles be above the 75% currently required.

Some ships are traversing the Strait of Hormuz, often with U.S. military assistance, despite Iranian threats and the waterway’s restricted status. The Journal’s Rebeca Feng, Jean Eaglesham and Costas Paris write that, in recent weeks, clumps of vessels–some of them laden with oil and LNG–have traversed the dangerous crossing, opening a tiny relief valve for the global economy.

Some ships are sailing “dark,” turning off lights and traveling without navigational beacons known as Automatic Identification Systems, or AIS, that help prevent collisions. Some ships stay in contact with U.S. military officials, who use radar, drones and other tools to monitor traffic and help them transit safely.

The U.S. advises them when to go dark and how to respond to Iranian threats, according to shipowners and U.S. officials.

Silicon Valley venture-capital firms known for early investments in software and social-media companies are venturing outside of their comfort zones into backing physical technologies and materials tied to the AI boom.

The WSJ’s Kate Clark writes that they are making new wagers on chips, power and manufacturing, as well as on so-called physical AI: autonomous machines that perform complex real-world tasks. VC investment in global robotics and physical AI grew to $26 billion in 2025 from $4.2 billion in 2019, according to PitchBook. This year, companies in those sectors have already raised more than $23 billion as of May 20.

Investment fund Paradigm recently made its first investment in manufacturing, backing a custom sheet-metal and parts company, SendCutSend. Jeff Bezos co-founded Project Prometheus, a startup focused on building AI systems that can understand and simulate the physical world. Uber co-founder Travis Kalanick’s newest venture, Atoms, is focused on specialized robotics for food, mining and transportation.

• The Chicago Business Barometer rose to 62.7 in May, reaching its highest level since January 2022. (WSJ)
• Canada’s economy unexpectedly shrank for a second consecutive quarter, with GDP declining 0.1% at an annualized rate. (WSJ)
• French inflation rose to 2.8% in May, its highest level since February 2024. (WSJ)
• China’s manufacturing activity grew at a softer pace in May, according to the RatingDog purchasing managers index compiled by S&P Global, which edged down to 51.8 from 52.2 in April. (WSJ)
• Beijing threatened trade probes against the European Union if the bloc proceeds with a proposal to curb subsidized foreign products. (WSJ)
• BYD unveiled an autonomous-driving chip, as the Chinese EV maker seeks a new technology growth driver. (WSJ)
• Nearly 1,000 workers at a Michigan automotive supplier are set to strike, stalling the production of key parts for General Motors’ midsize and full-size pickup trucks. (WSJ)
• International Flavors & Fragrances agreed to sell its food-ingredients business to buyout firm CVC Capital Partners in a deal valuing the unit at $4.3 billion including debt. (WSJ)
• United Parcel Service is investing $50 million to boost its U.S.-Mexico air-freight capacity to serve automotive and manufacturing customers. (DC Velocity)
• Hub Group’s COO and CFO left the transportation and logistics company as it takes “corrective actions” after a $77 million accounting error draws scrutiny. (Journal of Commerce)
• A tanker operated by a unit of Chinese state-owned COSCO Shipping delivered asphalt from New Orleans to New Haven, Conn., under the Trump administration’s waiver of the Jones Act. (gCaptain)
• Toyota Motor stopped development of a new Lexus EV, citing weak demand and the end of U.S. subsidies. (Bloomberg)
• U.S. sales of Class 8 heavy-duty trucks dropped by 18.2% in the first four months of 2026 from the same period last year, according to Omdia data. (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.