Trendwatch: EU to ramp up retaliation plans as US tariff deal prospects dim; U.S. issues three new restrictions against Mexico over air cargo dispute; The Cathay Group releases traffic figures for June 2025

EU to ramp up retaliation plans as US tariff deal prospects dim

The European Union is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

An increasing number of EU members, including Germany, are now considering using wide-ranging "anti-coercion" measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal, diplomats say.

U.S. issues three new restrictions against Mexico over air cargo dispute

The U.S. Department of Transportation is taking action against Mexico for forcing American cargo airlines to move out of Mexico City’s main airport — a move that the U.S. says breaks a long-standing agreement between the two countries.

In 2023, Mexico shut down access for all-cargo carriers at Benito Juárez International Airport and told them to relocate operations to the newer Felipe Ángeles International Airport. U.S. officials say this forced relocation violates the 2015 U.S.–Mexico Air Transport Agreement, which is supposed to ensure fair access and competition between the two nations.

The Cathay Group releases traffic figures for June 2025

Chief Customer and Commercial Officer Lavinia Lau said: “As a Group, we saw increased passenger and cargo volumes in June 2025 compared with June 2024. Cathay Pacific and HK Express carried a combined total of around 2.9 million passengers, 23.3% more than June 2024. Meanwhile, Cathay Cargo carried over 130,000 tons of cargo, 6.3% more than June last year.

Trickle of containerships return to Suez Canal under discount program

Two months into its special discount program to draw containerships back to the Suez Canal, the authority reports that 10 of the large vessels have now completed the transit. It continues to emphasize the opportunities, while carriers other than CMA CGM and MSC Mediterranean Shipping Line appear to continue to avoid the region in light of the continuing dangers.

Union Pacific and Norfolk Southern in merger talks

Two of the biggest freight railroads in the U.S. are in early talks to combine, according to reports from the AP, WSJ, and FT. If a deal happens, Union Pacific and Norfolk Southern would create the first coast-to-coast railroad in North America.

Pacific Ocean to the Atlantic, providing shippers with one connected option to move goods across the country. It would be the most significant U.S. rail merger in decades and would likely face intense scrutiny from regulators.

Antonov Airlines flies modernised An-124 out of Kyiv

Ukrainian aerospace firm Antonov has flown a modified An-124-100 out of Kyiv, following long-term modernisation work to replace Russian-built onboard equipment.

The aircraft (UR-82073) flew to Leipzig on 11 July following a programme initiated in 2021 but held up by the Ukrainian-Russian conflict.

Op-Ed: Shipping Emissions are Rising Despite Industry Commitments

The latest emissions data confirms what many of us feared: container shipping has just recorded its worst environmental performance to date.

Carbon emissions from the sector have surged dramatically, with figures showing a 14 percent rise globally and an even more shocking 45 percent spike in the EU. That’s not a long-term projection. That is what is happening right now.

BIMCO issues clause to tackle US fees on China-linked ships

The Documentary Committee of the world’s largest shipping association, BIMCO, has adopted a standard clause aimed at addressing contractual uncertainties that may arise from the US Trade Representative’s notice of actions to impose fees on Chinese-related ships calling US ports.

Singapore Changi cargo volumes on the up in Q2

Singapore Changi Airport handled 516,000 tonnes of airfreight in the second quarter of this year, a 6.2% increase over the same period of last year.

Coming at a time of what it pointed out were significant global trade uncertainties, Changi recorded growth across all types of cargo flow, with imports posting the strongest performance, up by 8% compared to the second quarter of 2024.

US, Japan reach deal on tariffs, market access

The U.S. has reached the terms of a trade deal with Japan that would lower tariffs and expand market access for domestically made goods, President Donald Trump said on Truth Social Tuesday evening. 

Imports from Japan would face a 15% tariff under the deal, according to Trump, who also said the country would open its markets to U.S.-made cars and trucks, as well as rice and other agricultural products.