High-level U.S.-China trade talks entered their second day in London, with Commerce Secretary Howard Lutnick saying dialogue was going well and would continue all day.

The WSJ’s Lingling Wei writes that President Trump's team has room in the talks to lift recent restrictions on the sale of high-tech and other products to China. The American products covered by these recent restrictions–never publicly announced–include jet engines and related parts, which China needs to build its own commercial planes, according to people familiar with the matter. Also curtailed are chip-making software and ethane, a natural-gas component used in making plastics. This unusual trade-talk tactic shows how deeply China’s controls on exports of rare-earth minerals and magnets made from them have affected U.S. industries, the auto sector in particular. The two sides agreed to a 90-day tariff truce in May after China’s lead negotiator, He Lifeng, agreed to resume exports of the crucial materials. But Beijing slow-walked export approvals and blamed the U.S. for undermining the deal.

Kevin Hassett, director of the National Economic Council, early Monday said he expected the negotiations to result in Beijing quickly releasing rare earths for export, with Washington easing China’s access to semiconductors.

• The National Retail Federation expects U.S. importers to bring in the equivalent of 2.01 million ocean shipping containers in June, up 5.2% from May as firms rush in goods during the tariff truce. (WSJ)
• Shipments of goods from Taiwan rose 38.6% in May–the fastest pace in nearly 15 years–thanks in part to a surge in exports to the U.S. (WSJ)
• A Chinese aircraft carrier is conducting drills hundreds of miles south of Japan’s main island, venturing into waters that could be strategically vital in a conflict with the U.S. (WSJ)
• Chinese exports of rare earths in May rose 23% from April to 5,865 tons, customs data show. (Bloomberg)

U.S. producers of the tin-coated, ultrathin sheet steel used in cans have been scaling back output for years, increasing dependence on foreign sources. Now, with a 50% duty on imported steel, soup, black beans and sliced pineapple could all soon get pricier, the Journal’s Bob Tita writes. Store prices for items in steel cans could jump by 9% to 15%, according to the Consumer Brands Association, whose members include Campbell’s and Hormel Foods. That means the price of a can of veggies costing $2 now could increase by 18 to 30 cents. About three-quarters of tin-plate consumed in the U.S. is foreign-made–much of it from Europe and Canada–leaving can manufacturers little choice but to buy it. As many as 20,000 U.S. jobs in food-can manufacturing could be at risk if consumers shy away from pricier canned goods and food makers shift to other packaging.

Four crew members were missing after their Singapore-flagged containership caught fire off the coast of India’s Kerala state following an explosion. Eighteen of 22 crew members abandoned the 890-foot-long Wan Hai 503, operated by Taiwan’s Wan Hai Lines, the Indian Coast Guard said. On Monday morning the coast guard received a distress signal from the ship bound for Mumbai from Colombo, Sri Lanka, reporting a blast and fire in one of the containers, which spread. Officials have yet to give a cause for the incident, which comes less than a week after the car carrier Morning Midas caught fire in the Pacific Ocean, and just a couple of weeks after a Liberia-flagged containership carrying hazardous cargo sank about 38 nautical miles off the Kerala coast. (Associated Press)

• Divers were set to start salvaging the containership carrying 13 boxes of hazardous cargo that sank off the coast of India’s Kerala state two weeks ago. (TradeWinds)
• A crew member died in a June 2 incident on the Tidewater platform-supply vessel Polaris, which was contracted to service Equinor’s Empire Wind project off the shore of New York. (reNEWS)

U.S. consumers expect lower inflation over the next year than they did a month ago, the New York Federal Reserve found in its latest survey. (WSJ)

Mexico's inflation picked up pace for a fourth consecutive month in May with higher food and core goods prices offsetting a seasonal decline in energy costs. (Dow Jones Newswires)

Ireland’s manufacturing output fell sharply in April, a sign the eurozone economy is slowing after a strong start to the year as U.S. businesses stockpiled goods ahead of tariffs. (WSJ)

Canada plans to boost military spending this year, aiming to catch up to its NATO commitments and try to placate Trump amid sensitive trade talks. (WSJ)

U.S. Transportation Secretary Sean Duffy said Biden-era fuel-economy standards for gas-powered cars and trucks are illegal and moved to reverse them, paving the way for a reset of rules. (Associated Press)

Aerospace-components manufacturer Crane agreed to acquire Baker Hughes’s sensor-based technologies company for $1.15 billion in cash. (WSJ)

Sunnova Energy International, one of largest U.S. rooftop-solar installation firms, filed for chapter 11, as shifting federal policies shake investor confidence in the clean-energy sector. (WSJ)

Cargado expanded into Canada, adding to the cross-border load board company’s marketplace for U.S.-Mexico truckload freight. (Journal of Commerce)

The Office of the U.S. Trade Representative opened public comments until July 7 on proposed changes to actions targeting Chinese shipping related to LNG export licenses and fees on car carriers. (Marine Log)

DHL Express Canada locked out 2,100 truck drivers, couriers and warehouse workers amid a contract dispute, prompting the Unifor union to go on strike. (The Globe and Mail)

Avianca Cargo will provide Amazon Air Cargo with a daily Boeing 767-300 charter between Miami and Bogotá to add airfreight capacity between the U.S. and Latin America. (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.