Global Aperture

On May 27^th, the U.S. Court of International Trade in Manhattan ruled that President Trump exceeded his authority in imposing broad tariffs under the International Emergency Economic Powers Act, halting key measures targeting countries like China, Mexico, and Canada. The decision, now under appeal, could significantly impact U.S. trade policy and offer relief to businesses affected by the tariffs.

Global air cargo tonnage rose 6% in mid-May compared to the previous week, driven by strong rebounds from Asia Pacific origins such as China, Hong Kong, Japan, and South Korea, supported by post-holiday demand and easing U.S.-China trade tensions. Gains were partially offset by declines from Central and South America, where flower exports dropped after Mother’s Day.

Maritime trade routes are undergoing another round of reshuffling as carriers adapt to ongoing disruptions in the Red Sea and rising geopolitical tensions. Many vessels are continuing to divert around the Cape of Good Hope, adding transit time and altering traditional shipping schedules across Asia–Europe and other key lanes.

Escalating port congestion is further straining container shipping flows, with delays intensifying at major transshipment hubs in Asia and Europe. Rising dwell times, limited yard space, and vessel bunching are creating operational challenges and adding pressure to already stretched global supply chains.

Americas

United States: The United States has delayed a planned 50% tariff on European Union imports until July 9^th following a request from European Commission President Ursula von der Leyen to allow more time for negotiations. United States President Donald Trump agreed to the extension, stating that talks would now begin rapidly to address the ongoing trade imbalance.

The transpacific demand surge has raised concerns over potential congestion at key US ports, especially on the West Coast, as carriers rapidly reinstate services and front-load cargo ahead of the 90-day tariff reprieve. However, industry experts remain confident that, despite the rising volumes, major ports are well-positioned to handle the influx without experiencing pandemic-era bottlenecks.

Asia-Pacific

India: Indian exports have resumed passage through the Red Sea corridor, signaling a tentative return to regular shipping activities following prolonged disruptions due to regional unrest. This positive development was confirmed by the Federation of Indian Export Organizations (FIEO) on May 27^th. The reinstatement of this key maritime route offers a significant boost to India's trade, easing logistical challenges and reducing transit times and costs for exporters.

China: Factory owners in southern China are facing rising uncertainty after new U.S. tariffs disrupted export plans and raised concerns about declining overseas orders. The resulting hesitation to invest in production or labor is already slowing output, with ripple effects expected across global supply chains, particularly for electronics and consumer goods. Many businesses are holding back as retailers await further tariff updates.

Europe, Middle East & Africa

Port congestion across key European hubs is expected to persist through July, driven by increased vessel arrivals, blank sailings recovery, and disrupted schedules from Asia. Terminals in Rotterdam, Hamburg, and Antwerp are experiencing high yard utilization and delays, prompting concerns about further slowdowns during the upcoming peak season.

European Union: The European Union has resumed trade talks with the United States following the delayed tariff implementation by U.S. President Donald Trump, now set to take effect on July 9^th. While the EU is proposing a “zero-for-zero” strategy to eliminate industrial tariffs, major differences remain—particularly over U.S. demands to revise EU tax structures and digital regulations, which European officials have firmly rejected.

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