Resetting global semiconductor supply chains is proving to be a messy business. Industry officials warn that potential new restrictions on the sale of artificial intelligence semiconductors to China could come with a hefty long-term cost for the American chip sector. The WSJ’s Asa Fitch and Yuka Hayashi report the Biden administration is considering new export controls that would prevent companies from shipping chips used to create powerful AI systems to China without first obtaining a license. Colette Kress, CFO at chip maker Nvidia, says such restrictions would cost U.S. manufacturers the opportunity “to compete and lead in one of the world’s largest markets.” The outsize demand for AI chips may soften the blow. There’s a shortage of the high-performance chips needed to build big language-generating AI systems like OpenAI’s ChatGPT, although Nvidia has said it is securing more supplies in the second half of the year.

The big retail inventory drawdown is starting to bite food suppliers. Sales at General Mills took a hit in the past quarter, as volumes tumbled 6%, with international and North American markets falling at the fastest pace. The WSJ’s Dean Seal reports the maker of Cheerios and Bisquick pancake mix still expanded its top line by 3% thanks to higher pricing. But the sharp pullback in kitchen staples signals that even supermarket chains are clamping down on the stocks that filled shelves and warehouses during the pandemic. Executives said on a call with analysts that some of General Mills’ big customers are working to get inventories in check as pandemic-era supply disruptions ease and the costs of keeping goods rises. Government figures show inventories at food and beverage stores have been more stable than stocks at other retailers. But higher interest rates have boosted inventory carrying costs.

Lower natural gas prices are starting to course through supply chains. Natural gas is starting the summer at less than half the price it was a year ago, a turnabout from a period when Russia’s invasion of Ukraine triggered turmoil in markets for the commodity. The WSJ’s Ryan Dezember reports that should mean lower electricity bills for American households this summer, while makers of chemicals, fertilizer, steel and other products already report that lower gas bills are easing cost pressures and bolstering their profit margins. The amount of gas in storage is more than 15% above the five-year average for this time of year, according to the government figures. Last summer started with inventories 13% below normal. Market experts say the lower prices carry risk since they may prompt producers to pull back, reducing supplies and setting up potential shortages and price spikes in the future.

• Petrochemicals maker INEOS Energy Trading entered the liquefied natural gas shipping market through charter agreements with Mitsui O.S.K. Lines. (gCaptain)

U.S. imports fell 2.7% in May to the lowest level by value in six months. (MarketWatch)

Overstock.com completed a $21.5 million acquisition of certain intellectual property assets of bankrupt home-goods retailer Bed Bath & Beyond. (WSJ)

The European Union rejected a U.S. proposal to end a standoff over tariffs on steel and aluminum. (Financial Times)

Steel production in the U.S. is down about 2.9% so far this year. (Recycling Today)

The union representing dockworkers at British Columbia ports issued a notice that their members are prepared to strike on Saturday. (CBC)

Striking machinists at Boeing supplier Spirit Aerosystems are set to vote today on a tentative contract agreement. (Wichita Eagle)

TD Cowen says shippers appear to be shifting business away from Yellow as a confrontation between the trucker and the Teamsters heats up. (Dow Jones Newswires)

Home Depot expects to cut its supply chain costs by about $500 million by next year. (Supply Chain Dive)

JLL projects back-to-school spending in the U.S. will rise 15.7% this year. (Retail Dive)

TikTok plans to launch an online retail store in the U.S. version of the social app to sell and deliver goods that it acquires. (Semafor)

Container lines CMA CGM and Evergreen are preparing big orders for new ships that will add to the record orders of the past three years. (Splash 247)

New ship deliveries are expected to add 1.5 million boxes of capacity to the container shipping market by the end of the year. (Lloyd’s List)

All the smaller and new container shipping companies that launched Asia-North America services during the pandemic have left the market. (ShippingWatch)

Canadian Pacific Kansas City and CSX will jointly create a rail corridor linking Mexico, Texas, and the U.S. Southeast using Genesee & Wyoming assets. (Supply Chain Quarterly)

Michael Aldwell is replacing Otto Schacht as head of the ocean freight division at forwarder Kuehne + Nagel. (TradeWinds)

Kim Kardashian online underwear label Skims will start opening physical stores. (Bloomberg)

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 Twitter at @WSJLogistics.