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Trump Takes New Tariff Tack; Used EV Batteries to Help Back Up Grid

By Mark R. Long | WSJ Logistics Report

 

Products from the European Union and more than a dozen other economies would face the new, 10% duty. PHOTO: YVES HERMAN/REUTERS

Months after the Supreme Court struck down President Trump’s most sweeping global tariffs, the administration said it would levy new tariffs using a different legal mechanism, the WSJ’s Jeanne Whalen and Chao Deng write.

Products from the European Union, the U.K. and over a dozen other economies would face the new duty of at least 10% after an investigation found they hadn’t done enough to block imports of goods made from forced labor, the Office of the U.S. Trade Representative said.

China, Japan, India and other countries would face a 12.5% rate because they don’t prohibit such imports and haven’t committed to do so through a deal with the White House. The USTR included Canada and Mexico on its list of countries facing 10% tariffs, but goods complying with the U.S.-Mexico-Canada trade pact would be exempted.

The duties, which are subject to public comment and could change, are based on a probe under Section 301 of the 1974 Trade Act. This allows the U.S. to impose tariffs based on allegedly unfair practices, but Trump’s latest use of the mechanism could face broad legal challenges.

  • The Trump administration tweaked its rules for copper tariffs, lowering the content threshold for products to count as U.S.-made. (Bloomberg)
 
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“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable.”

— U.S. Trade Representative Jamieson Greer
 
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Energy Storage

A B2U energy storage system in Lancaster, Calif. PHOTO: AWARDED GOODS

Alphabet’s Waymo is set to recycle its old EV batteries as storage for solar power in partnership with B2U Storage Solutions, the WSJ’s Clara Hudson writes. Waymo isn’t the first car company to recycle its batteries with B2U, but its fleet of self-driving cars go through them more frequently than regular EVs.

To repurpose EV batteries—which B2U buys from auto and other companies—the units are removed from the cars, tested and ultimately packed into 9-foot tall cabinets, which look like small shipping containers. Each one contains dozens of old EV batteries. The company estimates one cabinet could power an average home for up to three months, with each battery reused by B2U adding up to $10,000 in added power value.

B2U, which has been repurposing EV batteries since 2020, has also worked with other car companies including Nissan and Tesla to collect their batteries for grid storage.

  • Google's strategy of securing its own sources of generation could allow it to get its data centers connected to the grid faster than competitors, analysts say. (WSJ)
 

Number of the Day

264,449

Intermodal containers and trailers carried on U.S. railroads in the week ended May 30, up 10% from a year earlier, according to the Association of American Railroads

 

In Other News

  • Kuwait’s international airport shut down Wednesday after Iran launched ballistic missiles and drones, killing one person and injuring dozens. (WSJ)
  • The OECD forecast a significant global economic slowdown in 2026 due to higher energy costs and the Iran war. (WSJ)
  • U.S. crude oil inventories extended their decline to six weeks as exports rose and refineries ran near full capacity, according to the Energy Information Administration. (WSJ)
  • Old Dominion Freight Line said revenue per day rose 12% in May from a year earlier as less-than-truckload revenue per hundredweight increased, even as LTL tons per day fell 3.8%. (Dow Jones Newswires)
  • More people are visiting Macy’s and buying higher-priced items, helping to drive a rebound in sales and profits at the department-store chain. (WSJ)
  • Rheinmetall agreed to sell its automotive business to Munich-based Aequita for a provisional price of $407.1 million, as the arms maker focuses on its defense business. (WSJ)
  • Zara’s owner, the Spanish fashion giant Inditex, said sales growth picked up last month despite a difficult market environment for apparel companies. (WSJ)
  • Mediterranean Shipping Co. plans to restart its Pearl service from South China to Long Beach, Calif., as spot ocean freight rates climb. (Journal of Commerce)
  • Sixth Street agreed to invest more than $1 billion in trade-intelligence and analytics firm Kpler. (Axios)
  • A surge in Chinese detentions of Panamanian-flagged ships is spurring a wave of re-registrations in the Marshall Islands and other countries. (Lloyd’s List)
  • BKM Capital Partners and Kayne Anderson Real Estate acquired an 8.5-million-square-foot industrial portfolio from Link Logistics for $1.81 billion. (DC Velocity)
  • Qatar Airways Cargo launched a new energy-infrastructure service. (Air Cargo News)
  • Legislation to scrap a 12% excise tax on new heavy-duty trucks, tractors and trailers was introduced in the Senate. (Transport Topics)
 

About Us

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.

 
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