Holiday decorations, children’s toys and womenswear are among the items stranded in China as American importers and Chinese suppliers wait to see what happens with steep U.S. tariffs.

The WSJ’s Rebecca Feng, Hannah Miao and Natasha Khan report that the Trump administration’s tariffs are creating chaos for businesspeople on both sides of the Pacific who built their livelihoods on global supply chains for everything from toys and furniture to footwear.

U.S. trade officials are scheduled to travel to Switzerland today to meet Beijing’s lead economic representative, potentially paving the way for broader trade talks.

The past few months of uncertainty have already led importers to freeze or cancel billions of dollars worth of orders, potentially leaving them short-handed for the essential back-to-school period. Some paid deposits for products that can no longer be sold for a profit.

They’re scrambling for workarounds as they try to figure out where to source affordable goods, especially items that can only be made by specialty producers and are rarely found outside China.

Chinese factories, meanwhile, have halted production lines and furloughed workers, while sidelined goods pile up in storage. One factory is unloading excess merchandise by livestreaming a sales event from a Shenzhen port.

• The European Union is set to publish a list of more than $100 billion​ worth of American products it could hit with tariffs. (WSJ)
• Apparel retailer Hugo Boss is rerouting products made in China to non-U.S. markets. (Bloomberg)

Logistics companies are flashing warning signals about the U.S. economy.

Fewer containerships are headed to American seaports. Truckers are pulling back on vehicle purchases. A measure of global supply-chain demand is at its lowest level since the start of the Covid-19 pandemic.

The WSJ’s Paul Berger and Gunjan Banerji write that companies and investors are closely tracking the data points as they try to gauge the effects tariffs are having on the U.S.

Ocean carriers, truckers and railroads provide early warning signs because they are the ones moving the goods and raw materials that power the country. The data indicate retailers and manufacturers have stockpiled inventories and are hitting pause on orders while they wait to see if the U.S. and China can end their tariff war.

For now, one consulting firm says it expects companies are cutting back further as they prepare for worsening economic conditions.

Big automakers are bracing for tariffs. General Motors, Ford, Stellantis and Tesla are strategizing to address possible price increases and supply-chain disruptions. In an episode of the What’s News podcast, the WSJ’s Ryan Felton explains what car companies are doing and what it could mean for customers.

The Federal Reserve warned the economy faced growing risks of higher unemployment and higher inflation due to tariffs as officials held interest rates steady. (WSJ)

Retail trade in the eurozone fell by 0.1% in March. (WSJ)

China’s central bank plans to cut interest rates and inject more liquidity into the financial system. (WSJ)

German factory orders climbed 3.6% in March. (WSJ)

Sales of EVs in the U.S. fell by around 5% in April while the broader car market grew by 10%. (WSJ)

Uber Technologies reported revenue in its Freight division fell 2% to $1.26 billion in the latest quarter. (WSJ)

Freight brokerage RXO posted a net loss of $31 million for the quarter ended March 31 while revenue grew 57% to $1.43 billion. (Transport Topics)

The U.S. Postal Service is zeroing in on FedEx board member David Steiner to be the next postmaster general. (Washington Post)

The White House confirmed the vice chair of the National Transportation Safety Board, Alvin Brown, was removed from his position. (Associated Press)

Ivory Coast, the world's biggest cashew grower, raised its projected output even as potential tariffs and a falling dollar dragged down exports. (Reuters)

China’s Jiangsu Ocean Shipping is expanding its containership fleet with four newbuilds contracted at Jiangsu Soho Chuangke Shipbuilding. (Splash 247)

Prologis is moving forward with plans for a warehouse in San Leandro, Calif., following appeals from two separate groups. (Business Journals)

Staples is rolling out a new warehouse management platform run by Manhattan Associates across its fulfillment centers. (Chain Store Age)

Amazon unveiled its first warehouse robot with a sense of touch. (Geekwire)

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.