MARKET BRIEF | August 2025
Update: Trump Tariffs
President Donald Trump extended the current U.S.–China tariff truce through November 9, maintaining existing 30% tariffs while allowing additional time for trade talks. Key provisions include semiconductor companies Nvidia and AMD agreeing to remit 15% of their U.S. chip sales in China back to the U.S. government, and a gold tariff exemption that benefits Swiss refiners.
The Trump administration has also expanded Section 232 metal tariffs — originally applied to raw steel and aluminum — to now include finished goods such as knives, transformers, aluminum wire, HVAC equipment, and machinery. The move aims to prevent circumvention of tariffs by importing products in processed form rather than as raw materials. U.S. steel and aluminum producers support the change, but downstream industries warn of shortages and rising costs that could disrupt infrastructure and technology projects. Overall, this marks a broader use of Section 232 powers to protect domestic supply chains under the banner of national security.
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U.S. West Coast Ports Smash Import Records
The Ports of Los Angeles and Long Beach handled a staggering 1,011,809 TEUs in July — eclipsing their previous record set in 2021 peak during the Pandemic. This surge was fueled by retailers accelerating inbound shipments to beat looming tariff increases, particularly affecting Chinese goods. However, experts caution that this might be the pinnacle. With inventories now well-stocked, import volumes in August are showing stabilization, possibly signaling a slowdown.
USPS 10-Year Restructure Plan
The U.S. Postal Service (USPS) reports that around 10,500 employees accepted a voluntary early retirement offer in 2025, with each granted a $15,000 separation incentive. This workforce reduction builds on cuts of 30,000 since 2021, as USPS seeks to lower labor costs and streamline operations under its “Delivering for America” 10-year transformation strategy. This ambitious plan aims to achieve financial sustainability by avoiding up to $160 billion in projected losses by 2030.
USPS is deploying cost-saving measures — modernizing its network, improving air and surface transportation efficiency, consolidating facilities, and investing $40 billion in infrastructure, including new fleet vehicles, sorting equipment, and employee tools. Early progress includes cutting $1.8 billion in transportation costs and trimming 45 million work-hours through productivity improvements and facility optimization.
New Postmaster General David Steiner — just weeks into his tenure — affirmed the plan’s strategy, emphasizing execution of its goals as key to USPS’s path forward.
East Midlands Airport Outpaces Heathrow
Logistics dynamics are evolving in the UK. East Midlands Airport (EMA) has leapfrogged Heathrow (LHR) in cargo growth. In recent months, its air freight volumes surged by nearly 20%, compared to just 2.7% growth at Heathrow. In July alone, East Midlands handled a notable jump in cargo, benefiting from four new freight carriers — one of which shifted operations from Heathrow. Other key drivers for East Midlands’ growth include its lower fees, generous runway capacity, and tighter scheduling reliability — attributes further enhanced by logistics developments in the adjacent East Midlands Freeport zone.
Despite the growth, Heathrow still facilitates a much greater volume. Over the past three months, East Midlands handled 113,000 tons of freight, compared to a quarter of Heathrow’s 386,000 tons; its annual freight total is 375,000 tons, compared to 1.6 million at Heathrow.
Update: Red Sea Houthi Attacks
This month, Houthi rebels have intensified attacks on commercial shipping in the Red Sea, targeting multiple container ships and oil tankers. On August 3, the Liberian-flagged Groton was struck by a missile without damage. Days later, the Contship Ono faced drones and missiles, but with no harm reported. The tanker Delta Blue endured back-to-back assaults between August 8–9, including rocket-propelled grenades, a missile, and an unmanned surface vessel, all repelled or missing the target. On August 13, the Delta Atlantica and On Phoenix were attacked, but escaped damage. The most serious incident occurred on August 21, when the Greek-flagged Sounion caught fire and lost power after a violent assault, requiring rescue and salvage.
Despite repeated strikes, most vessels have avoided serious damage and crews remained safe.
