The crippling of Chinese imports to Southern California’s sprawling ports is rippling through a region where trade and logistics are among the biggest economic drivers, employing about 900,000 people.

The WSJ Logistics Report’s Paul Berger writes that the sharp drop in containers reaching the neighboring ports of Los Angeles and Long Beach has resulted in fewer hours for dockworkers and warehouse employees, and fewer loads for truckers. It also means owners of local restaurants, truck dealerships, repair shops and other businesses are cutting hours and staff. Every four shipping containers that enter the ports support one job nationwide, according to Port of Los Angeles officials. The local longshoremen’s union says full-time dockworkers are working three or four days a week, down from five or six in normal times. Last month, shipping companies canceled dozens of sailings from China, sending arrivals into the San Pedro Bay port complex down 17% in the first half of May.

Although some relief is in the offing from an expected bump in Chinese cargoes following the relaxation of tariffs, it may not be sustainable. The current 30% tariff rate is still high for many importers, and consumers may be put off by higher prices, denting longer term growth.

• China’s industrial profits grew 3.0% year-over-year in April, up from 2.6% in March, driven by increased output despite continued trade tensions and uncertainty. (WSJ)
• PDD Holdings, the Chinese owner of bargain-shopping app Temu, posted sharply lower quarterly profit as tariff barriers threatened its business. (WSJ)

The European Union agreed to fast-track talks with the U.S. to de-escalate their trade conflict.

The EU’s plan marks a friendlier turn of events after President Trump last week lashed out at the EU, threatening to impose 50% tariffs from June 1, the Journal’s Edith Hancock writes. Following a call with European Commission President Ursula von der Leyen over the weekend, Trump agreed to delay the introduction of that rate until July 9. On Tuesday, Trump said the EU had been in contact to set dates for further talks, while the EU said it plans to intensify technical negotiations in the coming days. As part of its effort to speed up negotiations, the EU asked major European business groups to collect recent information about their members’ investments in the U.S. The easing of tensions and an upturn in U.S. consumer confidence following the U.S.-China trade truce sparked a rally in U.S. stocks.

• Eurozone's economic sentiment recovered slightly in May as consumers and industry shook off some of the turmoil prompted by U.S. tariffs. (WSJ)
• Swiss watch exports rose in April, boosted by a jump in U.S. demand ahead of potential tariffs. (WSJ)
• Tesla’s sales in the European Union fell 53% in April, the fourth drop in a row, as Elon Musk’s company struggles to cash in on a growing EV market where Chinese rivals are expanding. (WSJ)
• France and Germany are demanding the withdrawal of an EU law on “ethical” supply chains, which could have a positive effect on trade talks with the U.S. (American Journal of Transportation)

Even for diehards committed to buying only American-made goods, exceptions are a part of life.

The WSJ’s Natasha Khan and Rachel Louise Ensign write that a quest to buy only “Made in the U.S.A.” products can work for items like sheets, socks and sofas. But global supply chains built over decades of outsourcing mean domestically produced phones, glasses, weed trimmers and other products are next to impossible to find. President Trump’s tariffs are aimed in part at bringing manufacturing back to the U.S., a cause politicians from different parties have embraced for decades. Yet, even when American-made goods are available, they can be too expensive. A survey of about 1,000 U.S. adults showed more than half intentionally buy American at least sometimes, but only 11% of those willing to pay more for U.S. goods could stomach a price increase higher than 15%.

Total U.S. orders for durable goods such as autos, planes and electronic gear fell 6.3% last month from March. (WSJ)

U.S. home prices fell 0.3% in March from February, the first monthly decline on a seasonally adjusted basis since January 2023. (WSJ)

Consumer sentiment in Germany improved slightly as wage expectations grew and views of the economic outlook calmed. (WSJ)

French inflation cooled more than expected this month, opening the door to an expected European Central Bank interest-rate cut next week. (WSJ)

Trump is considering sanctions against Russia because of Vladimir Putin’s attacks on Ukraine and slow peace talks. (WSJ)

King Charles III said Canada is firmly self-determining, subtly rebuking Trump’s repeated suggestion that it become part of the U.S. (WSJ)

A federal judge in Manhattan temporarily barred the Trump administration from cutting transportation funds for New York as it tries to end congestion pricing. (WSJ)

German industrial firm Thyssenkrupp plans to separate its divisions and transform into a holding company, seeking outside investment and independence for its units. (WSJ)

AutoZone’s quarterly results were pressured by foreign-currency fluctuations, though same-store sales rose 3.2%. (WSJ)

Harmony Gold said it would acquire New York-listed MAC Copper in a $1.03 billion cash deal. (WSJ)

Taiwan Semiconductor Manufacturing will establish a new chip-design center in Germany as Europe seeks greater self-sufficiency in semiconductor production. (WSJ)

CMA CGM signed a $600 million deal with Saigon Newport to build and operate a deepwater container terminal in Haiphong, Vietnam. (Journal of Commerce)

Mediterranean Shipping has acquired more than 10 panamax and post-panamax vessels this month, according to sales registers and shipbrokers. (Splash 247)

American makers of solar-power equipment asked the U.S. International Trade Commission to address a potential tariff loophole on panel imports from four Southeast Asian countries. (Bloomberg)

All 24 crew members were rescued from a Mediterranean Shipping containership that sank Sunday in the Arabian Sea off the coast of India. (Associated Press)

San Francisco startup Pallet raised $27 million for an AI product that automates repetitive processes in logistics workflows. (DC Velocity)

A downturn in the market for shipping liquefied natural gas is driving vessel owners to scrap older ships at a faster pace, while almost 60 carriers are idle, Clarksons Research data show. (Marine Insight)

Gemini alliance partners A.P. Moeller-Maersk and Hapag-Lloyd are launching a new Asia-to-U.S. route across the Pacific to meet high demand for container freight. (Shipping Watch)

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.