U.S. port operators warn that the cost of critical upgrades would balloon by tens of millions of dollars if the Trump administration moves forward with proposed new tariffs on port equipment.

The WSJ Logistics Report’s Paul Berger writes that broader efforts to counter China’s dominance of the global maritime industry include tariffs of up to 100% on Chinese-made cranes and other cargo-handling equipment. Shipping industry officials say those fees would be stacked on top of 25% duties on Chinese cranes the Biden administration introduced, as well as Trump’s new China tariffs. These fees don’t account for the scarcity of non-Chinese cranes, industry officials say. China produces more than 70% of the world’s ship-to-shore cranes, with just one company, Shanghai Zhenhua Heavy Industries, or ZPMC, accounting for nearly 80% of cranes at U.S. ports.

At about $15 million each, Chinese cranes cost several million dollars less than their cheapest competitors. Ports are asking the administration to exempt cranes ordered before the end of 2024. They also want the U.S. Trade Representative’s office to delay levies on new crane orders for three years to allow manufacturing to develop in the U.S., or for allied countries to expand production.

• Germany's Port of Hamburg plans to invest 1.1 billion euros, or about $1.3 billion, to expand and update its infrastructure.  (World Cargo News)

More U.S. warehouse space is sitting empty than at any time in the past 11 years. The WSJ Logistics Report’s Liz Young writes that companies are holding off on leasing new space amid rapidly shifting trade policies. The average vacancy rate across the U.S. was 7.1% in the second quarter, according to a new Cushman & Wakefield report. That is up from 6.9% in the first quarter and 6.1% a year earlier. Retailers and other businesses stockpiled goods in their existing warehouses earlier this year ahead of anticipated tariffs, then pared back overseas orders and paused leasing decisions as the duties were announced. After the pandemic’s frenzied expansion in warehouse construction and leasing, many tenants have been cutting back on excess space, and developers have dialed back new construction. Nevertheless, the total U.S. warehouse inventory was up 19% in the first half of the year compared with 2019.

The U.S. will charge a 50% tariff on Brazilian goods starting on Aug. 1, President Trump said in a letter to the country’s government. The Wall Street Journal’s Gavin Bade and Samantha Pearson write that Trump cited legal action against the nation’s former President Jair Bolsonaro and U.S. tech firms as justification. The tariff is the highest yet in Trump’s flurry of letters to world leaders, sent after he extended the deadline for so-called reciprocal tariffs to Aug. 1 from July 9. Bolsonaro is on trial over an alleged coup attempt. Unlike with Trump’s other reciprocal tariffs, the letter explicitly cited his support for an embattled political ally. The 50% duty—which could go higher, according to the letter—would seriously disrupt $92 billion trade in goods with Brazil. Although the U.S. ran a trade surplus of $7.4 billion with Brazil last year, Trump referenced trade deficits as a national security threat in his letter.

• Twenty-one countries, including Sri Lanka, Algeria, Japan and Myanmar, had received letters as of Wednesday afternoon disclosing new tariff levels scheduled to go into effect Aug. 1.
• The European Union is aiming for an outline trade deal with the U.S. this month, and potentially within days, a spokesman said.
• Daimler Truck expects extremely low U.S. orders until trade uncertainty clears, as logistics companies have reduced truck purchases while shipments of tariff-hit goods have fallen. (Bloomberg)

WSJ VIDEO: Footage released by Yemen’s Houthi rebels showed what they said was the group’s July 6 attack on the Liberian-flagged bulk carrier Magic Seas. (WSJ)

Minutes from the Federal Reserve’s June policy meeting tease at a looming split over whether and when officials will resume rate cuts. (WSJ)

China’s deflationary pressures remained elevated in June, with factory-gate prices declining at the fastest pace in nearly two years, eclipsing a slight increase in consumer prices. (WSJ)

Malaysia’s central bank cut its benchmark interest rate for the first time in five years, reducing its overnight policy rate by 25 basis points to 2.75%. (WSJ)

New Zealand’s central bank kept interest rates on hold, maintaining the official cash rate at 3.25%. (WSJ)

Volkswagen’s vehicle deliveries rose in the second quarter after gains in China and South America offset a steep decline in North America. (WSJ)

Ferrero, the Italian candy maker behind Ferrero Rocher and Nutella, is nearing a roughly $3 billion deal to buy the breakfast-cereal conglomerate WK Kellogg. (WSJ)

The CEO of stadium developer Oak View Group was charged with conspiring with a rival to rig the process for constructing a new arena in Texas. (WSJ)

Monogram Capital Partners is buying back meat-snack manufacturer Western Smokehouse Partners in a nearly $500 million deal. (WSJ)

Sea robberies in the Straits of Malacca and Singapore are rising, with 11 incidents in the week ending July 7 bringing the year’s total to 90, according to a regional antipiracy group. (Lloyd’s List)

Hong Kong International remained the world's No. 1 cargo airport last year, while Shanghai’s 9.8% year-over-year increase in volumes moved it into second place, Airports Council International data show. (Air Cargo News)

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.