Member Briefing July 29, 2025
Steel Tonnages Slip Overseas And Stabilize The U.S Suggesting Effects Of Tariffs
Global raw steel production fell to 151.4 million metric tons during June, a nearly 5.0% drop from the previous month and 5.8% drop from June 2024. The tonnages reported by several of the largest producer nations – but not including the U.S. steel industry – may indicate some effects of the 25% U.S. tariffs implemented March 12 on imports of steel and aluminum. With the latest totals, global raw steel production for the first half of 2025 totals 934.3 million metric tons, or -2.2% less than the January-June 2024 total.
China, the world's largest steelmaking nation and one of the largest exporters of semifinished steel, produce 83.2 million metric tons of raw steel during June, -4.1% less than in May and -9.2% less than in June 2024. For the current year to-date, Chinese steelmakers have produced 514.8 million metric tons of raw steel, a decline of -3.0% compared to January-June 2024. Steelmakers in the U.S. produced 6.9 million metric tons (7.6 million short tons) during June, 1.4% less than during May but 4.6% higher than the June 2024 total. For January-June 2025, U.S. raw steel production totaled 40.2 million metric tons (44.3 million short tons), 4.6% more than during the first six months of 2024.
Read more at American Machinist
CEOs Trumpet Smaller Workforces as a Sign of Corporate Health
Big companies are getting smaller—and their CEOs want everyone to know it. The careful, coded corporate language executives once used in describing staff cuts is giving way to blunt boasts about ever-shrinking workforces. Gone are the days when trimming head count signaled retrenchment or trouble. Bosses are showing off to Wall Street that they are embracing artificial intelligence and serious about becoming lean.
The shift reflects a cooling labor market, in which bosses are gaining an ever-stronger upper hand, and a new mindset on how best to run a company. Pointing to startups that command millions of dollars in revenue with only a handful of employees, many executives see large workforces as an impediment, not an asset, according to management specialists. Companies are used to discussing cuts, even human ones, in dollars-and-cents terms with investors. What is different is how more corporate bosses are recasting the head-count reductions as accomplishments that position their businesses for change.
China's Industrial Profits Fall Further In June
China's industrial profits continued to fall in June, data showed on Sunday, as entrenched producer deflation put more margin pressure on businesses in the face of subdued domestic demand and lingering global trade uncertainty. China's economy slowed less than expected in the second quarter in a show of resilience to U.S. tariffs. But punishing price wars among producers have prompted Beijing to pledge tougher regulations for autos and solar panels, among other industries engaged in cutthroat competition.
Factory-gate deflation deepened last month to its worst in almost two years, as softening domestic demand worsened overcapacity woes. Profits at China's industrial firms fell 4.3% in June from a year earlier, following a decline of 9.1% in May, while first-half profits were down 1.8% versus a slide of 1.1% in the period from January to May, National Bureau of Statistics data showed. State-owned firms recorded a 7.6% decline in profits in the first half. Private-sector companies reported a rise of 1.7% while foreign firms logged a 2.5% gain, the data showed. Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.8 million) from their main operations.
Global Headlines
Middle East
- Two Americans Detained in Iran on Suspicion of Spying for Israel – Newsweek
- Yemen’s Houthis Threaten To Escalate Attacks On Ships Linked To Companies Dealing With Israel - AP
- Another 180 Aid Trucks Enter Gaza, Israel Says – DPA International
- Trump Says U.S., Europe to Send More Aid to Gaza - WSJ
- Trump Says There Is 'Real Starvation' In Gaza And US Will Set Up Food Centres - BBC
- Hamas Hits Back at Donald Trump: 'Propaganda and Lies' - Newsweek
- On The Ground In Sweida, A Syrian City Torn By Druze-Bedouin Clashes – France 24
- Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
- Map – Conflicts in the Middle East – Live Universal Awareness Map
Ukraine
- European Countries To Borrow Billions From EU To Rearm Ukraine – Reuters
- Trump Says He Will Reduce Russia’s 50-Day Deadline For Peace Deal With Ukraine - CNBC
- Trump Sets New Deadline Of '10 Or 12 Days' For Putin To Agree To Ukraine Deal - BBC
- Russia At The Gates: How Ukraine Defended A Strategic City For Months - Reuters
- Poland Scrambles Fighter Jets Amid Russian Attack on Ukraine - Newsweek
- Russia Bans Refiners From Exporting Gasoline to Ensure Supplies - Bloomberg
- Plague Of Locusts Descends On Ukraine - Politico
- Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
- Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map
Other Headlines
- Trump Weighs Whether to Let Taiwan Leader Transit Through US – Yahoo
- New Missile For Truck-Based Himars Launchers Has China In Its Sights - WSJ
- Berlin Left In The Dark As Washington Weighs Troop Cuts In Europe - Politico
- China Calls For Shared AI Future, Offering Tech To Developing Countries – France 24
- US Applauds Thailand, Cambodia Ceasefire – The Hill
- Peru Mulls Green Light For $6 Bln In Mining Projects, President Says - Reuters
- How US-EU Aerospace Rivals United To Preserve Tariff-Free Aircraft Trade - Reuters
- Kim Jong Un’s Sister Rejects Outreach By South Korea’s New President – AP
Policy and Politics
Senate GOP Quietly Urges House To Shift Approach On Shutdown Talk
Senate Republicans say President Trump has made it clear he doesn’t want a government shutdown, and they’re urging House GOP lawmakers to tone down their approach to the Sept. 30 funding deadline. House Republicans jammed Senate Democrats in March with a partisan funding bill, which Senate Democratic Leader Chuck Schumer (N.Y.) reluctantly voted for to avoid a shutdown. But the political dynamics are different now. Schumer is under heavy pressure to fight harder against Trump and his MAGA allies, heightening the chance of a shutdown if Speaker Mike Johnson (R-La.) tries to use the same playbook.
A Republican senator who requested anonymity said Trump, who dined with Senate Republicans at the White House recently to celebrate the passage of the One Big, Beautiful Bill Act, has made it clear to his allies on Capitol Hill that he wants to avoid a shutdown in the fall. The senator said higher spending levels in the Senate appropriations bills offer a “better path” to avoiding a government shutdown in the fall because they are less likely to provoke opposition from Democrats.
New NSF Initiative to Spur U.S. Manufacturing Technology
The National Science Foundation (NSF) is investing $25.5 million to support fundamental research and workforce development that will enable next-generation U.S. manufacturing. The awards will support seven research grants and nine seed projects across 36 institutions and companies through the NSF Future Manufacturing program. The goal is to spur new manufacturing capabilities, materials or systems. Projects span a range of topics, including “recyclofacturing” using artificial intelligence to create products from metal scrap, and using robotics and digital twins for additive manufacturing of multimaterial systems.
Brian Stone, NSF director says: “[We are] investing in teams that bring together scientific, engineering and manufacturing expertise to equip the American workforce for leadership in advanced manufacturing. By advancing research in areas such as the manufacture of critical materials, quantum devices and semiconductor production, human-robot collaboration and biologically based manufacturing, the program strengthens U.S. leadership in science and technology, expands innovation capacity, and prepares a skilled American workforce to compete and lead in the global economy.”
Trump’s Trade Deals And Tariffs Are On The Chopping Block In Court. What Happens Next
A federal appeals court is set to hear oral arguments next week in a high-profile lawsuit challenging Trump’s stated authority to effectively slap tariffs at any level on any country at any time, so long as he deems them necessary to address a national emergency. The Trump administration says that that expansive tariff power derives from the International Emergency Economic Powers Act, or IEEPA. The bulk of Trump’s biggest tariffs — including his fentanyl-related duties on Canada, Mexico and China, and the worldwide “reciprocal” tariffs he first unveiled in early April — rest on his invocation of that law.
The U.S. Court of International Trade struck those tariffs down in late May, ruling that Trump exceeded his authority under IEEPA. But the U.S. Court of Appeals for the Federal Circuit quickly paused that decision, keeping the tariffs in effect while Trump’s legal challenge plays out. The case, known as V.O.S. Selections v. Trump, is the furthest along of more than half a dozen federal lawsuits challenging Trump’s use of the emergency-powers law. No matter how the Federal Circuit ultimately rules in V.O.S., the case appears destined for the Supreme Court, which bears a 6-3 conservative majority and includes three justices appointed by Trump. But some experts still expect that Trump’s IEEPA tariffs will be scrapped.
Political Headlines
- Trump and Bessent Bring New Style to Managing America’s Debt – AP
- Roy Cooper Officially Launches North Carolina Senate Bid - Politico
- Voters Welcome Immigration Curbs but Say Tactics Go Too Far, WSJ Poll Finds - WSJ
- DOGE AI Tool to Target 100K Federal Rules for Elimination: Report - Newsweek
- Trump Administration's Bid To End NYC's Sanctuary City Laws Will Be Tough, Experts Say - Gothamist
- Judges Continue to Block Trump Policies Following Supreme Court Ruling - WSJ
- Authorities Seek To File Terrorism And Assault Charges Against Suspect In Walmart Knife Attack - AP
- South Park Mocks Trump's Ego, Manhood And Lawsuits In Controversial Return – France 24
- Trump Tracker: Keep Tabs On The Latest Announcements And Executive Orders - WSJ
Health and Wellness
Is the US in a Summer COVID Surge? Cases Are Rising in These States
COVID-19 cases are on the rise again across the country, marking the start of an anticipated summer wave, experts say. A recent uptick in transmission fueled by highly contagious new variants is causing an increasing number of Americans to come down with sore throats, fevers and other COVID symptoms — just in time for peak summer travel season. As of July 22, COVID-19 infections are either growing or likely growing in 26 states, declining in zero states and unchanged in 19 states, according to forecasting models from the U.S. Centers for Disease Control and Prevention.
"We are seeing an increase in COVID-19 with higher SARS-CoV-2 virus activity in wastewater and small rise in COVID-19 hospitalizations," Dr. Albert Ko, professor of public health, epidemiology and medicine at Yale School of Public Health, tells TODAY.com. The virus that causes COVID-19, called SARS-CoV-2, continues to mutate, giving rise to highly transmissible new variants that have evolved to better evade immunity. These include NB.1.8.1 aka "Nimbus," which causes a painful “razor blade throat." Nimbus is now the dominant variant in the U.S., accounting for 43% of cases as of June 21, per CDC data.
Industry News
Trade Wars
- Companies Welcome EU-U.S. Trade Deal as Least Bad Outcome – WSJ
- China, US Begin Third Round Of Trade Talks In Swedish Capital - SCMP
- Europe Reacts With Mix Of Relief And Concern To US Trade Deal - Reuters
- Euro Drops, Dollar Rises After Trump Strikes EU Deal - WSJ
- French PM Slams EU-US Trade Deal As ‘Submission’ To Trump - Politico
- Who Are The Winners And Losers In US-EU Trade Deal? - BBC
- Trump: Global Baseline Tariff Will Likely Be 15% To 20% - CNBC
- EU, US To Form Metals Alliance To Counterbalance Chinese Overcapacity – Yahoo Finance
- Trump Plays Down Canada Trade-Deal Prospects - WSJ
- Carney Says US-Canada Trade Negotiations at ‘Intense Phase’ – Yahoo Finance
- US LNG Producers Soar As EU Agrees To $250 Billion In Annual Purchases - Reuters
- Turmp’s Trade Deals, A Summary to Date – IndustryWeek
US-EU Tariff Accord Protects Aircraft, Pharma and Semiconductor Trade
The United States and the European Union agreed on a framework trade deal, which leaders on both sides of the Atlantic said would end months of uncertainty for industries and consumers. Almost all EU goods entering the U.S. will be subject to a 15% baseline tariff. The 15% tariff is not added to any existing rates. Pharmaceuticals and microchips, however, will face a 0% tariff until the U.S. concludes Section 232 trade investigations in a few weeks and imposes new global tariff rates on the two industries. The levy on pharmaceuticals and microchips imported from Europe will not exceed 15%, irrespective of the tariffs applied more widely.
Importantly the U.S. and EU will have zero-for-zero tariffs on:
- All aircraft and their components
- Certain chemicals
- Certain generic drugs
- Semiconductor-making equipment
- Some agricultural products but with the exclusion of all sensitive products like beef, rice, ethanol, sugar or poultry.
- Natural resources and critical raw materials.
10 Notable Factory Cancellations Or Openings In 2025
Ford, JetZero, Hyundai, Texas Instruments and TSMC are among the manufacturers to make facility investment news this year. Meanwhile, other companies with renewable energy projects have halted plans. In the first quarter of 2025 alone, 16 clean energy and electric vehicle manufacturing projects worth $8 billion were canceled, according to environmental group E2. In May, that total grew to $15.5 billion and the loss of 12,000 potential jobs. The Trump administration has stated it wants to pause the disbursement of grants, loans and tax credits for clean energy projects. To this end, the president’s recently passed tax law restricts clean energy credits offered by the Inflation Reduction Act.
While this broader shift has resulted in some cancellations, other major manufacturing projects are still moving forward. Amidst the news of new initiatives being canceled, existing projects at further stages are continuing to completion, expansion and launch. Here are some of the biggest highlights of manufacturing investments that were announced … or put on hold so far in 2025.
Read more at Manufacturing Dive
Samsung to Make Tesla AI Chips in Multiyear Texas Deal
Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division. South Korea’s largest company announced on Monday that it secured the 22.8 trillion won chipmaking agreement, which will run through the end of 2033. The plan is for an upcoming plant in Taylor, Texas, to produce Tesla’s next-generation AI6 chip, Tesla chief Elon Musk said on X, confirming a Bloomberg News report.
The contract win comes as Samsung has been steadily losing ground in chip manufacturing. The company, which makes its own memory chips and also fabricates semiconductors on behalf of clients, has had difficulty bringing in enough orders to fully utilize its foundry capacity. It has postponed completion of construction and operational ramp-up of its new Texas fab to 2026. “Their foundry business has been loss-making and struggling with under-utilization, so this will help a lot,” said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore. “Tesla’s business may also help them to attract other customers.”
Audi Cuts Forecast Over US Tariffs And Restructuring Costs
German automaker Volkswagen's premium brand Audi lowered its full-year financial guidance on Monday, citing the impact of higher U.S. import tariffs and ongoing restructuring costs. The Ingolstadt-based company now expects revenue of between 65 billion euros and 70 billion euros ($76 billion and $82 billion), down from its previous forecast of 67.5 billion euros to 72.5 billion euros. Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%.
Although the recently reached US-EU trade deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate still represents a structural shift from the 2.5% rate before U.S. President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities.That leaves German carmakers facing persistently higher U.S. tariffs on their exports and long-term competitiveness challenges, he said. The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5-billion tariff hit in the first half of 2025.
Union Pacific Nearing Agreement To Buy Norfolk Southern Bloomberg Reports
Union Pacific (UNP), the largest U.S. railroad operator, could reach an agreement to acquire rival Norfolk Southern (NSC) as soon as early next week, Bloomberg News reported on Friday, citing people familiar with the matter. Union Pacific had said on Thursday it is in advanced talks to acquire its rival, signaling that a deal to form a $200 billion coast-to-coast rail company could be close - and potentially trigger further consolidation among remaining freight rail giants.
The combination, which would be the largest-ever buyout in the sector, would create the first modern West-to-East single-line freight railroad in the United States, significantly affecting how goods from grains to chemicals to autos move across the country. The fact that talks are advancing has surprised many in the rail industry and Wall Street as the U.S. freight rail system already functions as two regional duopolies by point of origin. If completed, the deal would combine Union Pacific’s dominant position in the western two-thirds of the U.S. with Norfolk Southern’s 19,500-mile network spanning 22 eastern states.
Thousands of Boeing Employees Could Strike Next Week: What To Know?
More than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets voted "overwhelmingly" to go on strike on Sunday after they rejected a proposed contract that included a 20 percent wage increase over four years. The International Machinists and Aerospace Workers union, or IAM, said the vote by District 837 members was overwhelmingly against the proposed contract. The current contract was to expire at 11:59 p.m. CT on Sunday, but the union said a "cooling off" period would keep a strike from beginning for a week, until Aug. 4, according to The Associated Press.
Union leaders had recommended approving Boeing's offer sent last week, calling it a "landmark" agreement that the offer would improve medical, pension and overtime benefits in addition to pay. Dan Gillian, Boeing's Air Dominance vice president, general manager and senior St. Louis Site executive said in an emailed statement that the company was disappointed that the Boeing employees voted down "the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities." The Boeing Air Dominance division produces several military jets, including the U.S. Navy's Super Hornet, as well as the Air Force's Red Hawk training aircraft.The company said it was preparing for a strike that the union said could begin on Aug. 4.
Firefly Aerospace Seeks $5.5 Billion Valuation In IPO As US Space Race Heats Up
Space technology startup Firefly Aerospace is targeting a valuation of about $5.5 billion in its U.S. initial public offering, as investor appetite for high-growth sectors shows signs of a sustained rebound. The Cedar Park, Texas-based company is aiming to sell its shares between $35 and $39 apiece to raise as much as $631.8 million, a regulatory filing showed on Monday.
With NASA relying more on commercial partnerships and defense spending rising, the space industry is rapidly becoming a high-stakes arena for technological dominance, national security and economic opportunity. Space startups continued to draw investor dollars in the April-June period, which was the second-strongest quarter on record for funding, an industry report showed earlier this month. Firefly Aerospace succeeded in its first attempt to land on the moon in March with its uncrewed Blue Ghost spacecraft. It expects the Blue Ghost lander to fly annual missions to the moon.
DoD Tests AI Models That Make It Easy To Switch From Vendors Like Palantir
The Department of Defense and other federal agencies have been testing AI models from Microsoft and OpenAI specifically aimed at extracting data from analytics applications run by contractors like Palantir and Lockheed Martin, the Information reported on Monday. Major tech companies including Amazon, Microsoft, and Salesforce have been developing AI tools to make it easier for customers to switch between platforms.
These new AI capabilities are designed to write code that transfers corporate data between applications or converts older programs into newer formats, potentially freeing customers from vendor lock-in situations. Government officials view these tools as potential leverage in contract negotiations with current providers like Palantir, as they could credibly threaten to migrate agency data to competing analytics platforms such as Microsoft’s Power BI.