Market Beats | UPS to Cut 20,000 Jobs and Close 73 Facilities Amid Amazon Volume Decline; US Merchandise-Trade Deficit Widens to Record; Midea Profit Surges 38% on China Subsidies; White House Slams Amazon Over Plan to Display Trump’s Tariff Costs; US Job Openings Fall to 2020 Lows Amid Tariff Uncertainty

—— UPS to Cut 20,000 Jobs and Close 73 Facilities Amid Amazon Volume Decline; US Merchandise-Trade Deficit Widens to Record; Midea’s Profit Surges 38% on China Subsidies; White House Slams Amazon Over Plan to Display Trump’s Tariff Costs; US Job Openings Fall to 2020 Lows Amid Tariff Uncertainty

1. UPS to Cut 20,000 Jobs and Close 73 Facilities Amid Amazon Volume Decline

United Parcel Service Inc. announced plans to cut 20,000 operational jobs and shutter 73 facilities by the end of June, as it overhauls its network in response to falling package volumes from its largest client, Amazon.com Inc.

The job cuts, which include delivery drivers and package handlers, will account for about 4% of UPS’s 490,000-strong workforce. The company said it may identify further facilities for closure later this year.

The restructuring follows UPS’s January announcement to reduce the number of Amazon parcels it handles by more than half over an 18-month period, shifting its focus toward higher-margin deliveries.

UPS had already cut 12,000 management jobs earlier in 2024, as it adapts to a challenging e-commerce environment marked by slower growth and rising competition.

The Atlanta-based logistics giant expects the network changes to generate $3.5 billion in annual cost savings.

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2. US Merchandise-Trade Deficit Widens to Record

The US merchandise-trade deficit widened sharply in March to a record $162 billion, as companies rushed to import goods ahead of sweeping tariffs imposed by President Donald Trump, signaling a likely drag on first-quarter economic growth.

The gap grew 9.6% from February, according to Commerce Department data released Tuesday, exceeding all economist estimates in a Bloomberg survey. Imports surged 5% to $342.7 billion, fueled by record inflows of consumer goods, along with increases in motor vehicles and capital goods. Exports rose a more modest 1.2%.

The import surge reflects a final scramble by businesses to stockpile inventory before tariffs on steel, aluminum, and a wide range of Chinese goods took effect. Analysts warn the ballooning trade deficit could weigh heavily on the GDP calculation for the quarter.

The data highlight the early economic distortions caused by the Trump administration’s aggressive tariff strategy, adding to market volatility and complicating the Federal Reserve’s task of navigating growth risks.

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3. Midea’s Profit Surges 38% on China Subsidies

Midea Group Co. posted strong first-quarter results, fueled by domestic subsidies for home appliance purchases even as rising US tariffs pose future risks.

Net income jumped 38% year-on-year to 12.4 billion yuan ($1.7 billion), topping analysts’ estimates of 10.8 billion yuan. Revenue grew 20% to 127.8 billion yuan during the period.

The surge comes as Chinese authorities expanded the list of subsidized home appliances — including dishwashers, rice cookers, and microwave ovens — to stimulate domestic demand amid export headwinds.

Despite strong domestic support, Midea faces increasing pressure abroad. According to Citigroup analyst Xiaopo Wei, about 6% of Midea’s total sales come from the US, with 60%-70% of those sales directly sourced from China — making them vulnerable to Trump administration tariffs.

Jefferies analysts noted that less than 10% of Midea’s 2024 profits were US-related but warned that increased platform charges from American retailers could erode profitability for Chinese brands like Midea and Haier Smart Home Co., effectively squeezing them out of the US market.

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4. White House Slams Amazon Over Plan to Display Trump’s Tariff Costs

The White House sharply criticized Amazon.com Inc. after reports surfaced that the online retail giant plans to start displaying the costs of President Donald Trump’s tariffs on product listings.

“This is a hostile and political act by Amazon,” White House Press Secretary Karoline Leavitt said Tuesday. “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?”

The remarks came after Punchbowl News reported that Amazon would soon show US-imposed tariff costs alongside product prices. While Amazon did not immediately comment, the move could highlight to millions of shoppers the direct impact of Trump’s aggressive trade measures.

Amazon and other major retailers such as Shein Group Ltd. are bracing for a 120% tariff on many imported goods due to the US ending the “de minimis” exemption, which previously allowed packages valued under $800 to enter the US without duties. The removal of the exemption is expected to drive up prices for a wide range of consumer products, from electronics to fashion.

Trump’s tariffs have already fueled inflation concerns, disrupted global supply chains, and triggered tensions between the administration and the business community.

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5. US Job Openings Fall to 2020 Lows Amid Tariff Uncertainty

US job openings dropped to 7.19 million in March, the lowest level since September and close to 2020 pandemic-era figures, according to Bureau of Labor Statistics data released Tuesday. That was below all economist estimates in a Bloomberg survey.

The decline reflects a cooling labor market as companies delay hiring plans amid growing economic uncertainty. Employers are becoming more cautious as President Donald Trump presses ahead with sweeping tariffs, which economists warn could dampen growth and increase the risk of a recession.

The Trump administration will receive its first major economic scorecard on Wednesday with the release of first-quarter GDP figures, expected to show a sharp slowdown. Further insights will come from Friday’s April employment report, with forecasts pointing to moderating job growth and a steady unemployment rate.

Despite the overall weaker demand for workers, some parts of the labor report were more positive: layoffs dropped to their lowest level since June, hiring remained stable, and the quits rate — a measure of worker confidence — rose to the highest since July.

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6. US Supply Chains Face Looming Crisis as Trump’s Tariffs Take Hold

President Donald Trump’s sweeping tariffs on Chinese goods, raised to 145% in early April, have already triggered a sharp decline in cargo shipments — by as much as 60% according to some estimates. While American consumers have yet to feel the full impact, shortages and higher prices are imminent.

By mid-May, retailers such as Walmart Inc. and Target Corp. are warning of empty shelves and price hikes as inventories deplete. Apollo Management’s chief economist Torsten Slok has likened the situation to “Covid-like” shortages, predicting significant layoffs in trucking, logistics, and retail sectors.

Though Trump has recently signaled some willingness to adjust tariffs, experts warn it may be too late to prevent a supply shock that could affect the US economy through the holiday season.

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7. US Mortgage Rates See Biggest Weekly Jump in a Year, Threatening Spring Home Sales

US mortgage rates rose for the first time in four weeks, posting the largest weekly gain since April 2024 and threatening to cool the housing market during the crucial spring buying season.

The average rate for a 30-year fixed loan climbed to 6.83% from 6.62% the previous week, Freddie Mac said in a statement Thursday.

The surge comes as global tariff tensions — particularly between the US and China — have rattled equity markets and pushed up yields on 10-year US Treasuries, which serve as a benchmark for mortgage pricing.

“When [the 10-year yield] rises, mortgage rates typically follow suit,” said Jiayi Xu, an economist at Realtor.com. “Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land.”

Demand is already showing signs of weakening. According to data from Redfin Corp., home-purchase contracts in the four weeks ending April 13 fell 0.8% from a year earlier.

“Consumers are feeling anxious about the economy and the rising cost of living, potentially leading them to adopt a ‘wait-and-see’ approach regarding significant purchases like homes,” said Kara Ng, senior economist at Zillow Home Loans.

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