A standoff with Japan over auto tariffs shows how tough it is  proving for the Trump administration to cut the many trade deals it said it would by July 9.

The Wall Street Journal’s Gavin Bade and Brian Schwartz write that the White House had vowed to reach agreements with dozens of countries by that deadline when it slapped so-called reciprocal tariffs on them—and then put them on hold. From the start, Japanese officials told the Americans they wouldn’t agree to any deal that preserves President Trump’s 25% auto tariff, according to people familiar with the conversations. That impasse continues, and on Monday Trump appeared to cut off talks with Tokyo. Administration officials trying to negotiate multiple deals have at times contradicted one another about goals and timelines, and Trump muddied the picture with references to sending letters, leaving Japan and other countries bewildered.

Even the tariff deadline is in question, with Treasury Secretary Scott Bessent saying Friday some countries could get an extension. On Tuesday, Trump said he wasn’t thinking about extending the deadline. Hanging over the process is Trump’s earlier promise to restore the duties on countries that don’t do deals—potentially triggering another round of market chaos.

• South Korea’s exports rebounded in June, rising 4.3% year-over-year to $59.8 billion, largely on brisk semiconductor shipments and despite tariff challenges. (WSJ)
• The U.S. and India are nearing a deal on tariffs, Treasury Secretary Scott Bessent said. (Reuters)

New-vehicle retail sales look set to dip in June to the slowest pace in a year, a reversal from early spring when consumers snapped up new cars before tariffs kicked in. The Journal’s Sharon Terlep reports that the latest sales figures posted by General Motors, Ford Motor, Toyota and most other automakers quantify the latest twist in the industry’s roller-coaster ride since the Trump administration slapped sweeping duties on imported cars and parts. That sent Americans, fearing higher prices, rushing to showrooms, with sales in March and April leaping to their highest number in years. Even with a slower June, many automakers enjoyed big gains in the first half of 2025. The extent of fallout from tariffs on car prices and the overall economy is the big unknown for the second half. Ford, Subaru and Toyota have disclosed plans to raise prices, hikes that could add pressure to high vehicle costs.

• Ford, Hyundai and Kia all reported steep declines in electric-vehicle sales, as consumer interest cools and deep discounts dry up. (WSJ)

U.S. factory activity contracted for a fourth straight month in June amid continued uncertainty about tariffs and their effect on costs. The WSJ’s Ed Frankl reports that the Institute for Supply Management’s purchasing managers’ index of manufacturing activity rose to 49.0 in June, from 48.5 in May. The uptick means the result is closing in on the 50-mark dividing growth and contraction. It was last in expansionary territory in the first two months of the year, though that followed 26 consecutive months of contraction. The survey’s gauge of new orders shrank for a fifth consecutive month, while the employment index dropped further into contraction as firms managed their head counts, as opposed to hiring. Tariff-induced price growth accelerated, with the last three months having brought the index’s highest readings since June 2022, the ISM said.

• A private gauge of China’s manufacturing activity bounced back into expansionary territory in June, as the temporary trade truce eased some pressure. (WSJ)
• Large Japanese manufacturers became slightly more optimistic about their business conditions in the second quarter despite tariff concerns. (WSJ)
• Factory activity in Asia ended the second quarter on a weak note, as tariff uncertainty weighed on orders and production. (WSJ)

Inflation in the eurozone crept up in June, with consumer prices rising 2% from a year earlier, compared with a 1.9% rise in May, statistics agency Eurostat said. (WSJ)

Germany’s unemployment rate was unchanged at a seasonally adjusted 6.3% in June. (WSJ)

Renault will take a roughly $11 billion charge on its stake in Nissan after changing the way it accounts for its shares as ties between the two carmakers loosen. (WSJ)

Norway’s largest private pension fund, KLP, dropped the U.S.’s Oshkosh and Germany’s Thyssenkrupp from its portfolio, citing sales of weapons to Israel as the Gaza war continues. (WSJ)

Two Chinese AI chip companies, Moore Threads and MetaX, aim to raise a combined $1.66 billion through IPOs, as the nation works toward chip independence. (WSJ)

California rolled back one of the most stringent environmental laws in the country—used by development opponents to block projects—to ease the state’s affordability crisis. (WSJ)

Boeing named Stephen Parker CEO of its defense, space and security business, removing the interim tag he carried since September. (WSJ)

Lululemon Athletica sued Costco, alleging that the warehouse-club chain is selling knockoff versions of its popular activewear through its Kirkland private-label brand. (WSJ)

Canadian National Railway is investing $38 million in Iowa for track maintenance and infrastructure initiatives amid a broader expansion of its North American rail network. (WSJ)

Amazon is expected to ship more parcels in the U.S. than the U.S. Postal Service by 2028, a Pitney Bowes report says. (Supply Chain Dive)

Union Pacific unit Loup Logistics launched a “port-to-door” service available at any U.S. port to transfer imports into rail-owned 53-foot containers for inland hauls. (Journal of Commerce)

The Louis-Dreyfus family sold an 80% stake in shipowner Louis Dreyfus Armateurs to French private-equity firm InfraVia Capital Partners for an undisclosed sum. The family is keeping a 20% share. (Splash 247)

Vietnam Airlines, which carries cargo in passenger planes, plans to launch a freight subsidiary in 2026. (The Loadstar)

China agreed to lift a ban on most seafood imports from Japan, following a two-year suspension on concerns over wastewater from the Fukushima nuclear plant. (Supply Chain Brain)

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.