The U.S. will keep 27.5% tariffs on auto imports in place until the European Union cuts its levies on a variety of American goods, details of last month’s trade pact show.

Once the EU introduces legislation to reduce tariffs on American seafood and farm products, the U.S. will cut levies on autos to 15%, the rate it will apply to nearly all European imports, according to a joint statement.

The Wall Street Journal’s Gavin Bade and Kim Mackrael write that the U.S. pledge to lower auto tariffs was a crucial element of the deal for European leaders and especially for Germany, a key auto exporter. Aircraft and aircraft parts, generic pharmaceuticals, the chemicals used to make them and some other products were exempted from the 15% tariff. U.S. tariffs on other pharmaceuticals, semiconductors and lumber from the EU will also be capped at 15%

Beijing and Washington continue to discuss a trade agreement, and fresh orders for hundreds of Boeing jets could be included, people familiar with the matter say.

The Journal’s Drew FitzGerald, Andrew Tangel and Raffaele Huang write that such purchases are envisioned as a component of a more expansive trade deal, if the world’s two biggest economies can reach one in the next few months. Bloomberg News reported that China could buy as many as 500 Boeing jets.

U.S. passenger-jet orders are becoming a favored concession for countries looking to improve tariff terms from American authorities. Deals reached with Qatar, the U.K., Japan and Indonesia include purchase pledges. The timeline of any aircraft deal with China is fluid and subject to progress with broader talks.

• Canadian Prime Minister Mark Carney and President Trump are planning further talks on trade and a new economic and security agreement. (WSJ)
• European officials say they will keep pushing for lower tariffs on wine and spirits. (Bloomberg)

Walmart said some shoppers are pulling back on spending because of tariff-driven price increases, but the retail giant is absorbing enough of the cost to keep its price hikes lower than the national average.

Shoppers are getting squeezed by higher prices, but the Journal’s Sarah Nassauer writes that Walmart is winning them over with grocery discounts, fast shipping and elevated fashion offerings. That allowed the company to post rapid sales growth and raise its outlook, though the retailer missed its earnings target for the latest quarter. Higher costs from job cuts and charges related to injury claims dented profit, and higher tariffs will keep costs ticking higher.

About a third of the products Walmart sells in the U.S. come from overseas. Because of tariffs, the company is raising prices on about 10% of the goods it imports, absorbing the rest of the elevated cost, CFO John David Rainey said. 

U.S. battery companies are looking overseas for new manufacturing opportunities as support for clean technologies wanes at home.

The Journal’s Yusuf Kahn writes that Group14, a Seattle silicon-battery materials maker, closed a $463 million funding round led by South Korean conglomerate SK Inc. As part of that deal, Group14 will take direct control of the manufacturing of the company’s silicon battery material in South Korea, having previously held a 25% stake in the joint venture.

As nations spar over trade, companies need to focus on building factories in the markets where they intend to sell, Group14’s CEO says. Clean-energy projects have been mired in uncertainty this year. Tariffs, tax-policy changes and cuts to grants have upended companies, driving them to search for opportunities in Asia and Europe, where battery demand remains strong.

U.S. business activity expanded at its fastest pace this year as the factory sector rebounded strongly, though tariffs are fueling inflation in input prices, monthly surveys show. (WSJ)

One in five U.S. employers surveyed by the Conference Board plans to slow hiring in the second half of 2025. (WSJ)

Sales of existing homes in the U.S. rose unexpectedly in July, signalling that the long-stalled housing market may be improving. (WSJ)

Hovnanian Enterprises’ profit plummeted, with the home builder saying a stagnant housing market forced it to offer significant incentives to stimulate sales. (WSJ)

European business activity is proving resilient despite tariffs weighing on some firms, with the composite eurozone PPI rising to 51.1 this month from 50.9 in July, according to S&P Global. (WSJ)

A draft of the highly anticipated “50% rule” to expand restrictions on sensitive U.S. exports has been under review since at least May, according to people familiar with the matter. (Dow Jones Risk Journal)

American Industrial Partners agreed to acquire International Paper’s global cellulose fibers business for $1.5 billion. (WSJ)

Blackstone struck a deal to buy Shermco, a provider of electrical-equipment services, from Gryphon Investors for about $1.6 billion. (WSJ)

Air Canada said it would be able to restore full operations ahead of schedule after resolving a three-day labor dispute with its 10,000 flight attendants. (WSJ)

The Commerce Department opened a national security investigation into imports of wind turbines and their components. (Reuters)

South Carolina Ports Authority CEO Barbara Melvin resigned and CFO Phillip Padget was named her interim replacement. (Charleston Regional Business Journal)

Orient Overseas said U.S. port charges on Chinese ships would have a relatively large impact on the Cosco Shipping unit, but shifting trade patterns could offset the effects. (Journal of Commerce)

Lufthansa is offering more cargo capacity in Europe this winter, as well as expanded global belly and freighter capacity. (Air Cargo News)

The volume of containers handled in July at Hong Kong’s port fell 6.5% year-over-year to 1.08 million 20-foot-equivalent units. (Seatrade Maritime News)

U.S. sales of Class 8 heavy-duty trucks fell 12% in July from a year earlier to 18,838, Wards Intelligence data show. (Transport Topics)

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.