Cattle ranchers are using drones to monitor herds, stepping up insecticide use and flagging potential cases to state authorities to stop the advance of the New World screwworm, a flesh-eating pest that had been eradicated from American soil 60 years ago.

The WSJ’s Amira McKee writes that the parasite, if not contained, could cost Texas ranchers more than $700 million a year, largely from livestock deaths, according to U.S. Department of Agriculture estimates. The timing is especially bad as drought and tight cattle supplies squeeze American beef production and inflate prices at the grocery.

The U.S. initially eradicated the screwworm by releasing sterile flies over infested areas, but since cases began exploding in Mexico in 2024, the agency struggled to revitalize its sterile-fly production. It would take output of about 500 million flies a week to once again eliminate the pest.

The USDA expects to start producing 60 million to 100 million sterile flies at a new facility in Mexico this month. Another plant under construction in South Texas could produce 100 million sterile flies by November 2027. To speed up production, the USDA is providing $100 million in grants to private-sector partners.

A federal appeals court ruled the Trump administration can keep collecting its 10% global tariff, the Journal’s Lydia Wheeler reports. In an unsigned opinion, a three-judge panel on the U.S. Court of Appeals for the Federal Circuit suggested the trade court might have got it wrong when it said Trump’s tariffs were unlawful.

Trump imposed the levies on goods from virtually every country using authority under Section 122 of the Trade Act of 1974 after his previous global tariffs were struck down by the Supreme Court in February. Two importers and a 24-state coalition filed a legal challenge, and the Court of International Trade had ruled the new global tariffs weren’t lawful.

The appeals court said if the tariffs are ultimately invalidated, the payments can be refunded with interest.

Prices charged by American producers continued to charge higher in May, the Labor Department said Thursday, marking another month of elevated wholesale inflation. The producer-price index rose by 1.1% last month, following an equal increase in April.

Over the past 12 months, the PPI is up by 6.5%, the fastest wholesale inflation since 2022. Energy prices explained a good deal of the elevated trend, rising by more than 10% in May alone. But even excluding food, energy and trade-services categories, wholesale prices were up by 0.8%.

• The European Central Bank raised its key interest rate to 2.25% from 2%. (WSJ)
• The World Bank downgraded its forecast for global economic growth for this year to 2.5% from 2.9% in 2025, citing the Iran war. (WSJ)
• U.S. jobless claims rose to 229,000 in the week through June 6, although the Labor Department said the labor market remains healthy. (WSJ)
• Three Indian sailors were killed in a U.S. operation to enforce its blockade of Iran, an Indian official said. (WSJ)
• Dana agreed to combine with Eaton’s Mobility business in a $5.1 billion deal. (WSJ)
• Germany’s Neura Robotics said it secured up to $1.4 billion in funding to build a physical AI platform, backed by Amazon, Nvidia and the European Investment Bank. (WSJ)
• Ocean carriers are looking to lease containers as the closure of the Strait of Hormuz and port congestion throttle the return of empty containers to export markets. (Journal of Commerce)
• New legislation in Hong Kong will give tax breaks to shipping-related businesses and commodity traders. (Splash247)
• CMA CGM has signed contracts for the building of eight containerships with China’s Hengli Heavy Industry. (Lloyd’s List)
• Volvo Autonomous Solutions said its trucks will go fully driverless on U.S. highways in the first quarter of next year. (TruckingDive)

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.