President Trump’s crackdown on Chinese imports has rerouted a tsunami of cheap stuff over to Europe.

The Wall Street Journal’s Chelsey Dulaney and Rebecca Feng write that the redirection of China’s export machine is one of the most dramatic examples of how Trump’s trade war has rewired global commerce. Chinese shipments to Europe and Southeast Asia are more than offsetting the nearly 20% contraction to the U.S.

In Europe, a shadow logistics network has emerged that has powered China’s trade surplus past $1 trillion for the first time this year. Upstart cargo airlines are forging what they call a modern silk road, connecting factory hubs in China to population centers across Europe, where Chinese immigrants get paid to store goods in spare rooms.

There are still bumps in the road ahead for China-founded companies such as Temu and Shein. The EU last week decided to impose a €3 fee on imported small packages starting in July and to fully close a customs loophole known as the de minimis rule in 2028. The U.K. plans to do the same in 2029.

Stemming the tide could prove difficult. After years of stagnant economic growth, Europeans are proving enthusiastic buyers on Chinese-run platforms such as TikTok Shop and Joybuy.

American wine importers are filling up their warehouses in the hopes of beating price increases.

The WSJ’s Laura Cooper reports that retailers, distributors and producers predict the cost of European-made bottles sold in the U.S. will rise by as much as 15% to 30% next year. That’s in part due to tariffs imposed by the Trump administration, as well as the euro’s rise against the U.S. dollar.

The prospect of rising prices is leading U.S.-based wine importers and retailers to stock up.

Producers and distributors who ship wine from Europe to the U.S. said they have attempted to absorb more of the cost of tariffs to keep prices lower. But some are starting to pass the costs along. Spanish wine and spirits company González Byass raised prices this fall by an average of 5% to 6%—and that wine is set to hit U.S. shelves around the start of the year.

Fewer Americans filed for new unemployment benefits last week. (Dow Jones Newswires)

Inflation eased unexpectedly in November, though economists cautioned about gaps in data collection due to the government shutdown. (WSJ)

Manufacturing activity in the Philadelphia region slipped further into negative territory in December. (WSJ)

BP named a former Exxon Mobil executive, Meg O’Neill, as CEO in an unexpected management shake-up. (WSJ)

FedEx posted higher revenue in its latest quarter, boosted by shipping more goods and at higher yields. (Dow Jones Newswires)

Instacart was ordered to pay $60 million in refunds to customers to settle allegations from the Federal Trade Commission that it used deceptive practices. (WSJ)

DoorDash will offer a grocery-shopping app within OpenAI’s ChatGPT platform. (WSJ)

U.S. spending on video-game consoles fell 27% last month, the worst November in two decades. (Bloomberg)

Victoria’s Secret plans to use less airfreight and more ocean shipping to help offset the cost of tariffs. (Supply Chain Dive)

E-commerce fulfillment provider Stord will invest $40 million to expand its warehouse in Hebron, Ky. (Louisville Courier Journal)

Giant Food and the Giant Co. will close six U.S. e-commerce fulfillment centers. (Grocery Dive)

DHL Supply Chain sold a refrigerated warehouse in Jacksonville, Fla., for $192 million. (Jacksonville Daily Record)

The U.S. imposed sanctions on 29 vessels and their management firms linked to the Iranian oil trade. (Reuters)

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.