U.S.-bound containership bookings from China are sinking as retailers and manufacturers switch supply lines and race to get products from other parts of Asia.

The WSJ Logistics Report’s Paul Berger reports that steep tariffs against China and a reprieve from new duties for many other countries have companies racing to overhaul their sourcing as the peak summer shipping season approaches. Officials from carriers, ports and third-party logistics firms say between 30% and 60% of eastbound trans-Pacific sailings have been cancelled. Dozens of these blank sailings were due to reach American ports in the coming weeks, as importers begin stocking up for next school year, Halloween, Christmas and other peak-demand times. One analyst, who called the shift “staggering,” estimates freight demand from China to the West Coast could drop 28% this week, with demand at East Coast ports plunging 42% next week.

Some Chinese factories have paused production, while others are canceling orders rather than risk making goods they can’t sell. U.S. officials have signaled openness to easing tariffs, which could lead to a sudden snapback of demand and rush for space on containerships.

• Chinese manufacturers are searching for new markets worldwide to offload products that would have served U.S. demand. (WSJ)
• Chinese authorities told some importers of U.S. goods that they would waive the most recent 125% increases in tariff rates for certain products. (WSJ)
• Trump said U.S. ships should get free-of-charge passage through the Panama and Suez canals. (Bloomberg)
• The U.S. will propose that Japan employ dual-use shipbuilding–constructing commercial ships with military applications–to help counter China. (Nikkei Asia)

As corporate earnings season enters its peak, a lengthening parade of executives is warning that the uncertainty from shape-shifting tariff threats is forcing them to drop their financial outlooks in the shredder.

PepsiCo, Procter & Gamble, Colgate-Palmolive, Boston Beer, Skechers, Merck and Tractor Supply are among the varied companies warning of higher costs, price hikes, lower earnings or all three as a result of the rollout of new tariffs. Executives from some companies, such as Steel Dynamics and Whirlpool, see benefits coming from the new tariffs, the Journal’s Lynn Cook, Alison Sider and Caitlin McCabe report. Still, a common refrain from major U.S. corporations is that the on-again, off-again trade policies are making it virtually impossible to plan investment and are spooking consumers.

Meanwhile, the focus in C-suites across the country is finding cost cuts anywhere they can, the WSJ’s Chip Cutter writes. Norfolk Southern is closely scrutinizing consultant fees, Dow is delaying construction of a new plant and Hasbro is accelerating a multiyear plan to trim $1 billion in costs. GE Aerospace executives are combing through balance sheets for reductions in travel and back-office spending to avoid cutting into research and development or destabilizing its supply chain.

• Americans are cutting back on vacations and accelerating purchases of products such as cars and smartphones that could be hit by tariffs. (WSJ)
• U.S. officials plan to conduct staggered trade negotiations using a new template that sets common terms for many of the talks. (WSJ)
• Companies are touting their Canadian credentials in a practice known as “maplewashing” or “mapleglazing” to appeal to anti-American shoppers. (WSJ)
• Shein raised U.S. prices for its products ahead of the end of the de minimis tariff exemption for small packages from China. (Bloomberg)

Salt-cured cattle hides by the hundreds of thousands are piling up in warehouses as the trade war with China hits U.S. exports of hides, as well as imports of finished goods. The U.S. used to be a haven for leather manufacturing, but the trade imbalance for these and related goods is one of the largest, leaving American companies particularly exposed, the Journal’s Owen Tucker-Smith and Andrew Mollica report. (WSJ)

China’s industrial profit rose 2.6% in March from a year earlier, in part thanks to Beijing’s stimulus push, reversing two months of decline. (WSJ)

China aims to implement more growth-supporting measures amid rising challenges from hefty U.S. tariffs. (WSJ)

Drugmaker AbbVie plans to invest more than $10 billion in domestic manufacturing and other capabilities over the next decade. (WSJ)

The FDA is requesting that Novavax conduct another clinical trial for its Covid-19 vaccine, a request that could be prohibitively expensive. (WSJ)

U.K. food-delivery company Deliveroo got a proposal from DoorDash to buy all of its shares for about $3.6 billion. (WSJ)

Toyota Motor’s chairman proposed a buyout of Toyota Industries that values the supplier to the carmaker at about $42 billion. (Bloomberg)

CMA CGM became the majority shareholder of Santos Brasil, the operator of South America’s largest container terminal. (Journal of Commerce)

The European Commission will require all vessels passing through EU waters to provide insurance information to crack down on “shadow fleet” operations. (Splash 247)

China’s market regulator warned CK Hutchison and parties involved in its $23 billion sale of global port assets to not circumvent an antitrust probe into the deal. (South China Morning Post)

At least 25 people were killed and hundreds injured in a huge explosion at an Iranian commercial port. (Associated Press)

Lufthansa Cargo is adding capacity to its summer schedule to Argentina and Brazil, amid growth in raw material and agricultural trade. (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.