European Union member states are pressing the bloc’s executive body to prepare new and potent measures to hit back at U.S. companies if a trade deal can’t be reached by President Trump’s Aug. 1 deadline.

The WSJ’s Kim Mackrael and Bertrand Benoit write that these moves could go beyond retaliatory tariffs on goods, and could include the EU’s anticoercion instrument. This is a last-resort legal tool that lets the biggest U.S. trading partner hit back at economic bullying with a wide range of restrictions on trade and investment. It has never been used before. The European Commission is already preparing measures that could be introduced using it, people briefed on the matter said, though the body says it still prefers a negotiated, mutually beneficial agreement. 

The measures being readied include possible levies or other restrictions on U.S. digital services and curbs on American companies’ access to the bloc’s public procurement market. These would be in addition to earlier packages of tariffs not yet put into effect that would target more than $100 billion of U.S. exports to Europe, ranging from airplanes to peanut butter and whiskey. 

China’s exports of rare-earth magnets in June increased nearly threefold from the previous month, though this remains well below last year's levels.

The WSJ’s Rebecca Fung writes that the increase in shipments came after Beijing lifted some export controls following a deal with the U.S. Despite this uptick, China’s exports of the magnets used in autos and high-tech products fell 38% year-over-year. Exports to the U.S. in particular were down 52% from a year earlier, to about 353,000 kilograms. This is prompting some Western manufacturers to pay for expensive airfreight shipments to receive rare-earth product supplies as soon as licenses are granted. Some are exploring ways to make their products with less-powerful magnets, and efforts to boost domestic production are advancing. 

• Shares of some Asia-Pacific battery-material producers rose sharply after the U.S. moved to impose hefty duties on graphite—a key component of battery anodes—imported from China. (WSJ)

President Trump says he has the winning formula for Coca-Cola: cane sugar instead of high-fructose corn syrup. Making it happen, however, means confronting the U.S. sugar deficit, the WSJ’s Patrick Thomas and Laura Cooper write. Each year, America consumes about 12.5 million tons of sugar, but produces only 4 million tons of cane sugar. The rest is made up by imports and sugar sourced from sugar beets.

Right now, the beverage industry relies on high-fructose corn syrup. Much of the sugar cane consumed in the U.S. each year is already spoken for by food makers. So, supplying the U.S. beverage industry, one commodities specialist said, would mean drastically boosting imports from countries such as Brazil and Mexico—countries facing stiff Trump administration tariffs on Aug. 1.

• Some McDonald’s locations ran short of lettuce and other toppings after the chain brought back Snack Wraps this month. (WSJ)

A preliminary gauge of U.S. consumer sentiment in July rose slightly to 61.8 from 60.7 in June. (WSJ)

U.S. housing starts rose to 1.32 million in June from a revised 1.26 million in May, but were 0.5% lower than a year earlier. (WSJ)

Japan’s ruling coalition lost a parliamentary election, putting delicate trade negotiations with the U.S. at risk. (WSJ)

Japanese core consumer prices, which exclude fresh food, rose 3.3% from a year earlier in June, compared with a 3.7% increase in May. (WSJ)

An arbitration panel cleared the way for Chevron to complete its $53 billion purchase of Hess, dismissing Exxon Mobil’s claim regarding Hess assets in Guyana. (WSJ)

3M raised its full-year earnings outlook and said it expects a full-year gross tariff impact of 20 cents a share, down from 60 cents. (WSJ)

BHP flagged rising costs and delays at a Canadian potash project, and said it may sell its Australian nickel operations as it reported record annual iron ore and copper output. (WSJ)

German AI defense startup Helsing is emerging as one of Europe’s fastest-growing companies as the continent rearms. (WSJ)

Reckitt Benckiser is selling a majority stake in its home-care business to Advent International in a deal valuing the unit at up to $4.8 billion, including debt. (WSJ)

Australian mining company Fortescue is reassessing green-energy projects under development in the U.S. in light of President Trump’s policies. (WSJ)

Aleon Metals, a privately held, Texas-based metals recycler and processor, tapped restructuring lawyers to advise on efforts to revamp its troubled balance sheet. (WSJ)

Athens-based Diana Shipping said in a regulatory filing that it has acquired a 7.72% stake in New York drybulk carrier Genco Shipping & Trading for about $46 million.

Shanghai plans to build a government-backed shipbuilding hub by 2027 on its Changxing Island, where China State Shipbuilding Corp. already has a presence. (Lloyd’s List)

Schneider National is dissolving its Cowan Systems brokerage unit, which it acquired for $390 million last year. (Journal of Commerce)

Porsche warned workers of further cost cuts as sales decline in China and the costs from U.S. tariffs rise. (Bloomberg)

The U.S. Navy is considering cutting up to five high-level positions that oversee the building of ships and fighter planes. (Politico)

Russia has allocated about $40 million to contract underwater inspections of ships arriving at Baltic Sea ports after tankers were hit with unexplained explosions. (The Moscow Times) 

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.