The Mexican government is pressing the U.S. to lower tariffs on North American autos as part of talks over reworking the U.S.-Mexico-Canada Agreement, according to people familiar with the matter. The WSJ's Gavin Bade and Amanda Coletta write that the move is a counterproposal to the Trump administration after its push to require more U.S.-made parts in vehicles.
The U.S. currently charges a 25% tariff on non-U.S. content in vehicles from Canada and Mexico. The Mexican proposal, made in recent weeks, would expand the tariff-free content allowed in vehicles and lower the top-line tariff rate for North American cars.
Under the Mexican plan, the U.S. would only apply tariffs on the value of vehicle components produced outside North America, allowing parts from Mexico and Canada to qualify for duty-free treatment, according to people with knowledge of the negotiations. The plan would drop the top-line tariff from 25% to a lower figure -- likely 5% or 10% -- on cars from North America that don't comply with the deal.
Warehousing
The race to build artificial-intelligence infrastructure is fueling demand for new warehouses. Warehouse developer and operator Link Logistics says 15% of new leasing so far this year is tied to the data-center build-out, up sharply from a year earlier.
Luke Petherbridge, CEO of the Blackstone-owned company, tells the WSJ Logistics Report's Liz Young that tenants include companies assembling and supplying components such as turbines, generators and switchgear.
Link operates about 460 million square feet of warehouse space across North America with a focus on buildings close to urban areas. Petherbridge said that while some data centers are being built in rural locations, suppliers are often looking for space closer to population centers to be able to staff their buildings.
-- Foxconn Technology Group is expanding global production of AI servers and other components to capture surging cloud infrastructure investment and strengthen manufacturing in key markets. (WSJ)
-- Bank of America plans to inject $250 billion into an infrastructure push that aims to boost U.S. investments in data centers, energy and critical minerals. (WSJ)
-- The State Department said it would commit up to $50 million in foreign assistance to develop a pilot platform in Panama to strengthen supply chains and speed trade in products needed for AI. (Bloomberg)
Maritime Security
Attacks by Russia and Ukraine have set ships and port infrastructure ablaze at both ends of the Black Sea, transforming one of the world's most important sea corridors, the WSJ's Anastasiia Malenko and Ian Lovett write.
An attack Tuesday night on the port of Novorossiysk was the latest in a series that demonstrate Ukraine's increasing proficiency at striking Russia's Black Sea coast. Combined with Russian barrages, these strikes now threaten to halt the sea's maritime commerce. Russia and Ukraine are among the world's largest grain exporters. Analysts say the escalation could drive up food prices in vulnerable countries in Africa and other regions.
Meanwhile, hits on tankers and sites around Novorossiysk have crimped operations at the Caspian Pipeline Consortium, which carries almost 2% of the world's oil, and whose shareholders include Chevron and ExxonMobil. The Trump administration, worried about higher energy prices, has urged Ukraine to curb attacks on non-Russian ships.
-- Iran has largely halted vessel traffic through the Strait of Hormuz using a handful of drone and missile attacks, while Trump claimed that the U.S. has total control of the waterway. (WSJ)
-- DP World said the Port of Jebel Ali is operational and undamaged, though the Iran war reduced vessel traffic, adding that its first-half, like-for-like container volumes excluding that port rose 6.5%.
-- OPEC cut its forecast for global oil-demand growth this year to 580,000 barrels a day, down from its previous estimate of 780,000 b/d. (WSJ)
-- U.S. commercial crude oil inventories rose unexpectedly by 17.4 million barrels to 424.4 million barrels in the week ended Aug. 7. (WSJ)
Number of the Day
U.S. corn yield forecast, in bushels an acre, for the 2026/27 season, down from the Agriculture Department's projection in July for 183 bushels an acre.
In Other News
-- The U.S. annual inflation rate cooled slightly to 3.4% in July from 3.5% in June, the Labor Department said, and a key measure of underlying price trends remained moderate last month. (WSJ)
-- U.S. electricity prices rose 4.2% in July from a year earlier, according to the Labor Department. (WSJ)
-- Hapag-Lloyd's earnings recovered in the second quarter, driven by strong exports out of Asia and increased U.S. demand. (WSJ)
-- A.P. Moller-Maersk raised its full-year guidance for the second time in less than three months, citing higher freight rates and strong demand in Asia. (WSJ)
-- Home Depot CEO Ted Decker is taking a temporary medical leave of absence. (WSJ)
-- Japanese autonomous-driving startup Turing is looking to enter the U.S. market, with a potential IPO in the next five years that would value the company at about $10 billion. (WSJ)
-- Uber Freight is investigating a data breach, with no disruption to operations, after a hacker group last week claimed it stole 1 million files from the company's systems. (Reuters)
-- The average daily auction price to transit the Panama Canal's most commonly used locks has risen to $1.1 million, more than 16 times the price a year ago, as water levels fall and demand rises. (Financial Times)
-- Union Pacific said it would impose peak-season intermodal surcharges of $1,000 a container in California, targeting shippers that typically move fewer than 10 loads a week. (Journal of Commerce)
-- Seven states' attorneys general said in a letter to the Surface Transportation Board that Union Pacific and Norfolk Southern failed to make a public-interest case for their proposed merger. (TrainsPRO)
-- The Association of American Railroads rescinded a change to rules for loading open-top gondola trailers amid metal recyclers' concerns about reduced usable railcar capacity and higher costs. (Recycling Today)
-- Walmart is considering building a 1.5 million-square-foot distribution center in Wallkill, N.Y. (SupplyChain24/7)
-- Defense Maritime Solutions, a unit of Finland's Wärtsilä, plans to invest over $30 million to expand its Chesapeake, Va., operations to manufacture and test marine engines. (WorkBoat)
-- Memphis International Airport was renamed as the Frederick W. Smith International Airport, in honor of the founder of FedEx, who died in June of last year. (WREG)