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Farmers on Edge of U.S.-China Trade Chaos; China Invests in Brazilian Port By Liz Young

A little green nut grown in California shows how the U.S.-China trade war is rocking America's agricultural producers.

The WSJ's Jim Carlton reports that pistachio growers in California feared devastating losses after President Trump reignited a trade war with their biggest customer, China . But as part of a deal this week to roll back tariffs, China dropped its 125% retaliatory duties to 10%, bringing relief across the community.

Still, some in the industry are worried about the remaining tariffs-and they are wary of further trade developments before the crop's harvest later this year.

American farmers are on the edge of Trump's trade wars, as they were during his first term, which resulted in more than $27 billion in agricultural export losses and prompted an industry bailout.

The value of U.S. pistachios shipped into China has shot up 20-fold since 2017. Until Monday, pistachio farmers feared a coming market plunge as they faced steep levies to sell to China.

Dave Puglia, president and CEO of trade group Western Growers, said the new agreement between the U.S. and China raises expectations that market access for American-grown specialty crops "will move from a temporary condition to a permanent feature of our trade relationship with China."

China will allow its airlines to take delivery of pre-existing orders for Boeing jets, reversing an earlier restriction. (WSJ) Shipping companies are preparing for a surge in shipments out of China and a rise in shipping rates after a tariff rollback. (WSJ) Carriers are rolling out surcharges after the U.S. slashed tariffs on Chinese goods, according to Linerlytica. (The Loadstar) CONTENT FROM: PENSKE Gain AI. Gain Ground with Penske.

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Economy & Trade

China is trying to unclog Latin America's largest port to feed its need for crops. The WSJ's Samantha Pearson reports that the Port of Santos in Brazil is struggling to keep up with growing demand for South American exports of soybeans and other agricultural goods , which represent China's only viable alternative to U.S. exports.

The vast majority of Brazil's port capacity is in use. Shipments of soybeans and corn face miles-long traffic jams to reach the port because of a lack of extensive railroad infrastructure in the country.

China's state-owned agricultural conglomerate, Cofco, is now building its biggest export terminal outside China at the port to manage shipments of corn, sugar and soybeans. The project is part of a bigger plan to shore up access to South America's agricultural bounty amid shortages of water and arable land at home and the trade war with the U.S.

Quotable Number of the Day In Other News

Consumer prices rose 2.3% in April from a year earlier. (WSJ)

A measure of small-business owners' confidence in the economy fell for the fourth straight month. (WSJ)

Honda Motor and Nissan Motor both expect multibillion-dollar blows from the tariffs on foreign-made cars imposed by the Trump administration. (WSJ)

Daimler Truck cut its sales and profit guidance for the year. (WSJ)

China's JD.com reported higher-than-expected earnings for the first quarter. (WSJ)

The Suez Canal Authority will offer a 15% discount on transit fees to entice shipping companies back to the Red Sea. (Lloyd's List)

The U.S. imposed sanctions on a shipping network it says has sent millions of barrels of Iranian oil to China. (Reuters)

Online grocery sales grew year-over-year in April, led by a 29% increase in orders for delivery. (Chain Store Age)

Trucking company ArcBest is testing automation of routine tasks in its truckload and service-center operations. (Trucking Dive)

Online ordering remains paused at U.K. retailer Marks & Spencer after a cyberattack more than three weeks ago. (MarketWatch)

DHL Group plans to buy more than 1,000 automated container-unloading robots from Boston Dynamics. (DC Velocity)

More than 200 firefighters battled a massive fire that broke out at a Baltimore warehouse. (Associated Press)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

May 14, 2025 07:03 ET (11:03 GMT)

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