U.S. contract manufacturer Markus Group may have had an easy choice for a new production site if it had been making the selection a few years ago. The straightforward choices based on economics aren’t so simple anymore, however, as the company considers the deteriorating trade relations between China and the U.S. The WSJ Logistics Report’s Paul Berger writes that geopolitics is taking a central role in supply-chain planning as a series of international confrontations upend traditional calculations for risk in sourcing and transportation. From expanding tariffs and trade restrictions to attacks on vessels in the Red Sea, concerns over geopolitics have rarely been more acute. Evan Smith, CEO of supply-chain technology company Altana AI said the drumbeat of new rules, regulations and tariffs is complicating trade compliance efforts, especially for larger companies that sit atop a supply chain that can include many thousands of suppliers.

• Mexico’s tariff increases of 5% to 50% on imports from China may limit China’s growing trade with the country. (South China Morning Post)

A fund that the European Union set up this year to back the purchase of more domestically produced military equipment marks a sea change for the bloc. The effort is one example of Europe’s new willingness to break longstanding taboos in a bid to build up domestic supply chains. The WSJ’s Tom Fairless and Kim Mackrael report that the EU is aiming to keep the continent’s industrial base competitive with the U.S. and China, whose governments are lavishing firms with hefty subsidies. European leaders believe that Europe’s bedrock manufacturing sector is at stake. Officials are watching Europe lose ground in the race to build industries of the future, whether it is electric cars or semiconductors. U.S. investments in new supply chains are getting attention in Brussels, where companies are pleading for regulators to allow European governments to match the U.S. subsidies dollar for dollar.

• The U.S. added several logistics firms to its list of operators sanctioned for helping supply Russia’s military. (Maritime Executive)

Footage shared with The Wall Street Journal shows one ship leaving the Port of Baltimore after being stranded for weeks. Vessels became trapped after the Francis Scott Key Bridge collapsed on March 26.

• Chubb is preparing to make a $350 million payout to Maryland for the collapsed Francis Scott Key Bridge in Baltimore. (WSJ)
• About 800 of the 4,700 containers on the Dali have been removed and taken to a nearby CSX rail yard. (Baltimore Sun)

Growth in Asia’s factory activity weakened slightly in April. (WSJ)

Canada’s goods exports plummeted 5.3% in March, reversing a gain in the month before. (WSJ)

Sales of new cars in the U.S. reached a four-month high last month. (MarketWatch)

Apple’s quarterly revenue fell 4.3% and profit declined amid ailing iPhone sales and anemic demand in China. (WSJ)

U.S. antitrust regulators say the former CEO of shale oil company Pioneer Natural Resources attempted to collude with OPEC to raise oil prices. (WSJ)

Wayfair’s U.S. sales slipped 1% last quarter but outperformed the broader furniture and home-furnishings sector. (WSJ)

Peloton Interactive laid off 15% of its workforce as CEO Barry McCarthy stepped down. (WSJ)

An arm of Toyota began automotive assembly at a plant in Cambodia. (Nikkei Asia)

ArcBest shareholders voted to lower the threshold for the trucking and logistics company to be acquired. (Trucking Dive)

The head of Daimler Truck Holding says slow progress in adding charging infrastructure is threatening the shift to zero-emission trucking. (Bloomberg)

Imports of U.S. household goods jumped 27.9% in the first quarter following steep declines the over the past two years. (Journal of Commerce)

Trading company Trafigura ordered four liquefied propane gas carriers with ammonia fueling capability. (TradeWinds)

Freight broker C.H. Robinson Worldwide's gross revenue declined 4.3% year-over-year in the first quarter but expanded over the previous quarter. (Air Cargo Next)

• Here's how venture capital became less lucrative.
• More companies are writing down goodwill impairments as the cost of capital remains higher.
• AI-generated workers are here and ready to get started. 
• KKR expects easier bank financing​ will open up dealmaking opportunities. (🔒)

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.