Dueling export restrictions by Washington and Beijing that have disrupted worldwide supply chains lead the agenda for trade talks today in London.

The WSJ’s Lingling Wei and Gavin Bade write that the U.S. team is set to press their Chinese counterparts to speed up exports of rare-earth minerals and magnets containing them as they agreed to in Geneva last month. The Chinese team, led by economic gatekeeper He Lifeng, wants Washington to remove recent restrictions on the sale of jet engines and a variety of technology and other products. Trust has eroded since the two sides agreed to the temporary truce on tariffs. The U.S. has condemned Beijing’s slow-walking of rare-earths export licenses. China sees a U.S. warning against use of some Chinese AI chips and other restrictions on a variety of American exports as a renewal of aggression. Nonetheless, Trump has struck an optimistic tone ahead of the London talks, and China’s Ministry of Commerce said it approved a number of rare-earth-related export licenses. Also for China, the addition of Commerce Secretary Howard Lutnick to the negotiating team is a welcome signal that Trump is willing to put the topic of export controls on the table.

• Chinese shipments to the U.S. sank 35% year-on-year in May, the biggest percentage decline since Covid-induced shutdowns in February 2020. (WSJ)
• Factory-gate prices in China fell in May at the fastest pace in more than a year amid trade uncertainties. (WSJ)
• China’s central bank injected around $139 billion of medium-term liquidity into markets. (WSJ)
• China's Automotive Energy Supply, or AESC, is halting construction of a $1.6 billion South Carolina plant to make EV batteries for BMW. (WSJ)
• Canada and China have reached a diplomatic détente, after years of testy relations and with Trump targeting both countries with hefty tariffs. (WSJ)
• Europe’s pledges to boost arms spending and talks on trade have won it a reprieve from the Trump administration’s barbs and threats. (WSJ)
• A federal judge denied the Justice Department’s request to pause litigation over the de minimis tariff exception on lower-value packages from China while the broader tariff continues. (Bloomberg)

California is stepping up enforcement of an obscure rule that regulates pollution from trucks and other vehicles operating at warehouses. The WSJ Logistics Report’s Paul Berger writes that state regulators hope the so-called indirect-source rule can push logistics companies and other firms toward green technologies, as GOP lawmakers in Washington roll back the state’s clean-air efforts. Indirect-source rules are implemented by local air districts to regulate pollution from vehicles that operate or call at logistics hubs, shopping malls and other facilities. The air-quality agency that covers the region around the state’s busiest port complex has over the past six months issued more than 220 violation notices to companies related to the warehouse indirect-source rule. The agency has collected more than $1.3 million in penalties for tardy company filings and more than $54 million in fees since 2023 to mitigate warehouse-related pollution. This is prompting logistics companies to take a hard look at emissions and to consider moves such as installing EV-charging stations and buying battery-electric trucks. 

• A.P. Moeller-Maersk unit APM Terminals signed a strategic agreement with Chinese battery maker CATL to speed the rollout of electric container-handling equipment. (WorldCargo News)
• Electric-truck maker Bollinger Motors emerged from receivership with a new chief executive and ownership structure. (The Detroit News)

Apparel companies and their overseas suppliers have been sparring for weeks over which will eat extra costs from tariffs. Clothing suppliers with Asian factories say brands haven’t backed off their requests for discounts, even after a trade court blocked many of Trump’s tariffs–a decision that was temporarily put on hold. The WSJ’s John Keilman writes that overseas fabric mills and garment makers, already facing rising labor rates, unfavorable currency shifts and sustainability demands, often squeak by with margins of less than 3%. Granting discounts related to tariffs could turn them into money losers. Clothing brands, meanwhile, are stuck trying to figure out how to shave down extra costs, while making sure factory standards remain high. One less-obvious disruption from the trade war: Brands are focused on tariffs and supply chain moves, and not innovating new products.

• Lululemon Athletica lost nearly a fifth of its market value after the athletic-gear maker said tariffs and consumer malaise would hurt its earnings this year. (WSJ)
• G-III Apparel, the firm behind DKNY, Calvin Klein and other brands, backed its full-year sales outlook, but pulled all other guidance for the year due to uncertainty around tariffs. (WSJ)

U.S. job growth slowed slightly in May as employers remained cautious about hiring amid uncertainty over tariffs and the economic outlook. (WSJ)

As the yuan strengthened on the temporary tariff truce and recent stimulus measures, China’s foreign-exchange reserves increased slightly in May. (WSJ)

Revised data confirmed that Japan’s economy shrank in the first quarter, solidifying the risk of a technical recession. (WSJ)

India’s central bank surprised markets with a jumbo rate cut, seizing on cooling inflation to frontload monetary easing and bolster economic growth. (WSJ)

Russia’s central bank cut its key interest rate for the first time since late 2022 despite an inflation rate that remains well above target. (WSJ)

Industrial production in the eurozone’s two largest economies, Germany and France, declined in April, the first month of President Trump’s global tariff blitz. (WSJ)

Canadian employers added a modest 8,800 jobs in May and unemployment rose to 7%, as the trade war with the U.S. takes its toll on the country’s labor market. (WSJ)

Canada introduced legislation aiming to speed approval of resource and infrastructure projects, and knock down growth-sapping internal trade barriers. (WSJ)

Trump issued executive orders to ease restrictions on U.S. drones, aiming to boost struggling American drone makers, wean the U.S. off Chinese drones and reduce their threat of danger. (WSJ)

Walmart is expanding its drone delivery collaboration with Wing to five additional cities over the next year. (Supply Chain Dive)

Global food prices fell in May as declines in corn and palm oil outweighed historically high prices for butter and bovine meat, United Nations data showed. (WSJ)

The Tesla artificial-intelligence executive who oversaw the Optimus humanoid-robot project left the company. (WSJ)

Amazon plans to invest over $5 billion in a cluster of data centers in Taiwan to support the launch of a new cloud services region on the island. (WSJ)

North Korea confirmed its capsized warship was upright, but the use of balloons in salvage work remains a mystery. (WSJ)

Truckstop founder Scott Moscrip is returning to the digital freight-matching platform as interim CEO to lead a strategic realignment of the company. (Journal of Commerce)

Last week’s fire that forced the crew to abandon the car carrier Morning Midas was the third such incident on that type of vessel this year and the thirteenth in the past decade. (Lloyd’s List)

The first floating windfarm in the Mediterranean basin, France’s Provence Grand Large, was fully commissioned. (Maritime Executive)

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.