MARKET BRIEF | July 2025
The Latest on the Trump Tariffs
Over the weekend, President Donald Trump announced a 30% tariff on imports from the European Union and Mexico – effective August 1 – citing trade imbalances, unfair practices by the EU, and Mexico’s failure to curb drug trafficking.
Days earlier, Trump announced August 1 tariffs of 20% to 30% on various nations – including Japan, South Korea, Iraq, the Philippines, and others – with some of those countries already facing rates up to 40%. A 50% tariff on copper is also planned, while a 200% tariff on pharmaceuticals is under consideration.
Trump has ruled out any extensions to this date. Despite widespread condemnation and concerns about economic disruption, markets have remained stable, with the EU reportedly close to securing a compromise that may involve a 10% tariff baseline, excluding sensitive sectors like autos and steel.
Follow Speaking Logistics for live blog updates on the latest news.
FedEx to Cut 500 Jobs & Consolidate Network
FedEx is eliminating nearly 500 positions and shutting down two parcel facilities this fall as part of a major network consolidation, impacting sites in North Carolina, Iowa, Nebraska, and Texas. This move follows broader workforce reductions already in progress, including 305 layoffs at a Fort Worth, Texas logistics center. In June, FedEx closed its Emeryville and Oakland, California shipping centers, cutting 174 jobs.
The company stated that the closures and job cuts are part of “Network 2.0,” its multi-year initiative to merge the FedEx Express and FedEx Ground operations in order to streamline deliveries and lower transportation expenses.
European Ports Hit Peak Congestion
Europe’s major ports – Rotterdam, Antwerp, and Hamburg – are experiencing their worst congestion levels since the COVID-19 pandemic. A combination of factors is fueling the disruption, including recent U.S. tariffs that have shifted global trade patterns, causing a surge in redirected cargo volumes to European terminals. Additionally, some vessels remain stranded due to ongoing Red Sea tensions, further straining port capacity. Compounding the issue are unusually low water levels on the Rhine River, a key inland shipping route, which are limiting barge traffic and reducing load capacity. As a result, shippers are facing delays of several days and barge backups of up to 77 hours.
The Latest on Red Sea Houthi Attacks
Earlier this month, the Houthis escalated their attacks in the Red Sea, sinking two merchant vessels. The MV Magic Seas, a Liberia-flagged ship, was hit on July 6 by drones, missiles, and small arms; its crew safely abandoned ship. Days later, the MV Eternity C was attacked, boarded, and rigged with explosives before sinking – killing four, with 11 still missing and others reportedly kidnapped. These are the deadliest incidents to date in the Houthi maritime campaign.
Despite a U.S.-brokered ceasefire, the Houthis continue targeting ships linked to Israel. The attacks have disrupted global shipping, with traffic through the Suez Canal dropping sharply. Environmental risks are also growing due to oil spills, prompting increased naval patrols and retaliatory Israeli strikes on Houthi-controlled ports.
