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Truckers Slow Down; U.S. Floats New Tariffs on Brazil; UAW Strike Targets Profitable GM Pickups By Mark R. Long | WSJ Logistics Report
Truck drivers are trying to find ways to mitigate persistently high fuel costs if they can't pass them onto customers. Improving fuel economy is one way, and slowing down by even a few miles an hour
can save truckers hundreds of dollars a week.
The WSJ's Esther Fung writes that with a gallon of diesel costing 25% more
than before the start of the Iran war, commercial drivers drove 4% slower in late April compared with the start of the year, according to INRIX.
In addition to the slight slowdown, INRIX found that average trip length is down by 2%. An initial analysis indicates the trend continued in May, the company said.
Slowing down comes with its own costs, however. Truck drivers operating on the spot market are paid by the mile, and they get the same rate even if they work longer hours by driving slower, said the Owner-Operator Independent Drivers Association.
Dollar General's CEO said customers are feeling stressed, increasingly reining in spending on household expenses
and seeking value as they face higher prices at the gas pump. (WSJ) PepsiCo is testing a 13-ounce bottle size, as well as mini cans, as surging gas prices have consumers thinking twice
about how much they spend in the convenience store. (WSJ) CONTENT FROM: PENSKE Gain Clarity. Gain Ground With Penske.
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Global Trade
The Trump administration is proposing a 25% tariff on some Brazilian goods as part of a probe into what the U.S. calls unfair trade practices , the Journal's Gavin Bade writes.
The proposed tariff would apply to Brazilian goods based on what the U.S. says is lax enforcement of deforestation laws, intellectual property protections and anticorruption rules, as well as Brazil's use of digital-services taxes against U.S. tech firms and "unfair" tariffs on American goods.
Most Brazilian exports to the U.S., like coffee, beef and other agricultural products, would be exempted from the tariffs under carve-outs that the Trump administration has enacted to lower costs for consumers. Tariffs on Brazilian imports that aren't subject to an exemption currently stand at 10%.
China pledged to buy 25 million metric tons of soybeans
from U.S. farmers' 2026 harvest as part of its commitment to the Trump administration last fall, Deputy Agriculture Secretary Stephen Vaden said. (WSJ) The Trump administration appealed a judge's order for the refund
of $166 billion in global tariffs the Supreme Court ruled illegal. (Bloomberg) The U.S. will slap new tariffs and antidumping duties on Mexican and Thai intermodal chassis and subassemblies , following a vote by the U.S. International Trade Commission. (Transport Topics)
Labor
Hundreds of unionized workers walked off the line at an auto-parts supplier in Three Rivers, Mich. Their leverage is about 160 miles away, in Detroit: General Motors.
The work stoppage at the Dauch plant-still commonly known by its former name, American Axle- halts the supply of axles and axle tubes
destined for GM's midsize and full-size pickup trucks. The WSJ's Christopher Otts writes that if GM's existing stockpile of the crucial parts runs out, the automaker won't be able to make some of its best-selling and most lucrative vehicles.
The situation imperils GM's heavy-duty Chevrolet Silverado and GMC Sierra pickups, as well as midsize trucks. For now, GM's truck plants are running as normal, and the company said it was monitoring the situation. Dauch is trying to keep the Michigan plant running with a "skelton crew" on nonunion contractors.
Number of the Day In Other News U.S. job openings increased to 7.6 million in April, while the hiring rate fell to 3.2% , according to the Labor Department. (WSJ) Eurozone inflation rose to 3.2% in May , its highest since September 2023. (WSJ) Genco Shipping & Trading's board unanimously rejected
Diana Shipping's revised unsolicited buyout offer. (WSJ) Elliott Investment Management has built a stake valued at more than $716 million in Northern Star Resources, seeking a strategic review
and potential sale of the gold miner. (WSJ) Spot shipping rates are rising sharply and capacity on the eastbound trans-Pacific route is tightening as U.S. importers frontload shipments
to head off rising bunker surcharges and fresh tariff uncertainty. (Journal of Commerce) Texas ports last year handled $107.7 billion worth of servers, components, power equipment and other gear needed for the build-out of AI data centers , according to a Newmark report. (SupplyChain24/7) Sales of ships for recycling fell to the lowest level in a year
in May as shipowners kept older vessels in service to meet strong freight demand. (Lloyd's List) Mediterranean Shipping Co. said all crewmembers were safe after its containership MSC Sariska V was hit by two projectiles
Monday night in the Persian Gulf. (The Loadstar) New York and six other states sued the Trump administration
and TotalEnergies over the cancellation of a wind lease off the coast of New York. (WSJ Pro Sustainable Business) 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
June 03, 2026 07:02 ET (11:02 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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