The U.S. missed out on an estimated $107 billion in tariff revenue last year due to importers evading duties, according to a new report from AI trade platform Altana.

Some shipments with goods made in China showed signs that they were illegally routed through countries such as Vietnam, Mexico or India that were subject to lower duties, in a practice known as transshipment. Altana said that tactic cost the U.S. an estimated $38 billion in 2025, the WSJ Logistics Report’s Liz Young writes in Dow Jones Risk Journal.

Other goods were classified incorrectly in order to secure a lower tariff rate, or their value was declared to U.S. Customs and Border Protection as being lower than the actual cost, among other methods of evasion. Altana’s report included evasion of the tariffs that Trump enacted last year under the International Emergency Economic Powers Act, or Ieepa, that were voided by the Supreme Court in February.

• General Motors said it expected a $500 million refund following the high court’s rejection of the Ieepa tariffs, as the automaker reported profitability that topped Wall Street estimates. (WSJ)
• About 15% of over 13 million import entries that cleared an initial review have been denied tariff refunds, though importers can fix errors and refile, Customs and Border Protection said. (Bloomberg)

United Parcel Service said it was in the home stretch of a yearslong restructuring that includes phasing out roughly half its Amazon business, as well as cutting tens of thousands of delivery-driver and warehouse-worker roles.

The Journal’s Connor Hart writes that costs tied to transformation initiatives weighed on UPS’s first-quarter bottom line, though the company said the moves should enable it to return to growth later this year. The company said it has completed the closure of 23 buildings during the recent quarter and is investing heavily in automation. It plans to close an additional 27 buildings this year.

UPS reaffirmed its full-year guidance, but said historically low U.S. consumer confidence readouts and sharply higher fuel costs from the war in Iran could threaten the company’s outlook.

• Kimberly-Clark said a blaze at a California warehouse will take an estimated $20 million bite out of its second-quarter revenue. (WSJ)
• Surging demand for optical fiber products used in AI data centers and continued growth in its new solar business sent Corning’s profit higher. (WSJ)
• Smithfield Foods said higher diesel prices are driving up its costs to truck hogs to processing plants and pork to grocery stores. (WSJ)
• Food distributor Sysco is looking to mom-and-pop shops to ease the pain from a slowdown in visits to national restaurant chains. (WSJ)

American consumers are still buying—many flush with cash from tax refunds—but how they spend is changing, the WSJ’s Rachel Wolfe writes. Shoppers are spending less on goods like clothing, furniture and sports equipment, which have risen in price over the past year. At the same time, they are spending more on some services and experiences, such as travel and healthcare.

• A Conference Board survey indicated consumer sentiment rose this month. (WSJ)

• More than 70 House Democrats urged President Trump to ban Chinese car companies from building vehicles in the U.S., citing national security. (WSJ)
• Japanese shipping company Mitsui O.S.K. Lines plans to set up a real-estate investment trust to unlock the value of its property holdings. (WSJ)
• JetBlue Airways is cutting capacity to mitigate rising fuel costs. (WSJ)
• The chair of the Federal Maritime Commission said the regulator could take action against carriers or foreign ships if the International Maritime Organization moves further to cut shipping emissions. (Journal of Commerce)
• The U.S. Geological Survey estimated that the Appalachian region has enough recoverable lithium to replace over 300 years of imports at last year’s level.
• The Airforwarders Association said a Federal Aviation Administration decision to cut flights at Chicago O’Hare International Airport would increase delays and strain supply chains. (Air Cargo News)
• Digital identification company Avery Dennison invested $75 million in Wiliot, a provider of sensors for supply-chain inventory visibility. (DC Velocity)
• Amazon Web Services launched an agentic supply-chain planning product called Amazon Connect Decisions. (SupplyChainDive)
• A coalition of transportation industry groups, shippers and manufacturers asked the Justice Department to establish special prosecutors to tackle cargo theft and other supply-chain crimes. (TrainsPRO)
• Union Pacific Railroad and Rocky Mountain Steel Mills reached a seven-year contract for the production of steel rails in the U.S. (SupplyChainBrain)
• The Department of the Interior said it will pay a total of $885 million to Golden State Wind and New Jersey-based Bluepoint Wind to end their offshore leases in exchange for conventional energy investment. (Los Angeles Times)
• Died: Dean Buntrock, 94, co-founder of Waste Management

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.