Newsletter [Nov 16 - Nov 22]
Good Morning
A note from our CEO, Richard Roman Jr
As we close out November, global trade policy is shifting rapidly — with new exclusions to reciprocal tariffs, expanding trade frameworks with El Salvador, and continued legal scrutiny over tariff authority in the U.S.
At the same time, freight and port infrastructure worldwide is evolving in ways that will reshape routing options, compliance requirements, and cost structures heading into 2026.
At JR Global, our priority remains the same: translate fast-moving global developments into clear, actionable strategy for your supply chain. This week’s updates highlight the importance of planning, visibility, and proactive tariff management.
The Roundup
What moved the world this week
Customs & Trade Policy Update
Updates to Annex I & II – Food & Agricultural Tariff Exclusions
The White House issued updates to Annex I & II, expanding exclusions for reciprocal tariffs on numerous food and agricultural products.
Key additions include:
Coffee, tea, cocoa-derived goods
Tropical fruits and produce not grown in sufficient U.S. quantities
Certain fertilizers and agricultural inputs
This expansion reduces tariff exposure for importers whose products fall under the updated Annex structure.
U.S.–El Salvador Framework Agreement
The U.S. and El Salvador have announced a new reciprocal trade framework, expected to be finalized in the coming weeks. Under this agreement:
The U.S. will remove reciprocal tariffs on Salvadoran exports that cannot be grown, mined, or produced in the U.S. in sufficient quantities.
Textile and apparel products under CAFTA-DR origin also qualify.
The U.S. will consider the agreement’s effect when executing trade actions under Section 232.
This signals a deeper shift toward hemispheric integration and may influence tariff exposure for importers sourcing from Central America.
Supreme Court Review – Tariff Authority Revisited
The Supreme Court continues to review whether the President has the authority to impose tariffs under IEEPA (International Emergency Economic Powers Act). Justices have expressed skepticism over its broad application, and while no ruling has been issued this week, the case has major implications:
Future tariff actions may face new limits
Some reciprocal or IEEPA-based tariffs could be struck down
Importers may gain eligibility for retroactive refunds
Supply Chain & Logistics News
Major Rail Consolidation: Union Pacific + Norfolk Southern ($85B)
The biggest rail development this year comes from the Union Pacific (UP) and Norfolk Southern (NS) merger, valued at $85 billion. The merged company would form the first true coast-to-coast U.S. freight railroad, combining UP’s Western network with NS’s Eastern network.
Why this impacts shippers:
Potential for higher rates due to reduced competition
Possible better long-haul reliability (fewer handoffs)
Near-term integration risks, including service delays
Increased leverage by a mega-carrier in inland routing markets
STB regulatory approval still pending but momentum is strong
Additional Rail Infrastructure Consolidation
Beyond the UP–NS mega-merger, the rail sector also saw:
FTAI Infrastructure acquiring The Wheeling Corporation (owner of Wheeling & Lake Erie Railway) for $1.05 billion
Growing pressure on BNSF and CSX as market concentration increases
Strategic buyers expanding rail infrastructure holdings nationwide
Egypt Port & Rail Expansion
Egypt continues large-scale modernization across Alexandria Port and national rail networks, aiming to strengthen its position as a regional logistics hub and reduce congestion along the Suez corridor.
EU Ending De Minimis for E-Commerce
The EU is eliminating de minimis thresholds for e-commerce parcels, meaning:
All shipments require customs clearance
VAT applies to every package
More paperwork, slower flows, and higher delivery costs
Additional Global Port News
Singapore & Busan are experiencing rising early-peak congestion
Latin American ports expanding infrastructure investments
Northern Europe seeing winter-related vessel delays
The Forecast
Trends, goals, and what’s on the radar at JR Global
As a team, we’ve been discussing how this week’s developments point to a broader shift in global trade and logistics. The expanding Annex I & II exclusions and the U.S.–El Salvador framework show that Washington is clearly moving toward deeper hemispheric integration — and we expect more tariff relief and restructuring across CAFTA-DR partners in the months ahead. At the same time, the Supreme Court’s IEEPA case keeps a layer of uncertainty around future tariff authority, so our advice to clients is to stay flexible and prepare for both opportunity and volatility in duty exposure.
On the logistics side, the Union Pacific–Norfolk Southern merger stands out as the most consequential industry move this year. A coast-to-coast rail operator could reshape inland costs, reliability, and routing strategies. We anticipate competitive pressure easing in the rail market, which may lead to higher rates and more standardized routing — but also increased vulnerability during network disruptions. Meanwhile, Egypt’s port and rail expansion and the EU’s elimination of de minimis signal that global routing and compliance requirements will continue to evolve.
Internally, JR Global is focused on modeling these changes proactively for our clients — from tariff impact dashboards to alternative inland and global routing options. Our priority is ensuring every shipper has clarity and a strategic playbook as these shifts take shape.
The Shortcut
Smart tips for smart shippers — key takeaways from this week’s newsletter
Audit tariffs on key SKUs: Review HTS classifications for food, ag, coffee/tea/cocoa, and fertilizer products to see if they now qualify under expanded Annex I & II exclusions.
Prepare for a tariff reset: Track the Supreme Court’s IEEPA case and reach out to us to build a playbook for quick changes to pricing, sourcing, and contracts—plus identify lanes where retroactive tariff refunds might be possible.
The Playlist
What the JR team is listening to this week in the office
Sources
White House Fact Sheet – Reciprocal Tariff Modifications
Reuters – U.S. expands exclusions for agricultural items
White House Joint Statement – U.S.–El Salvador Agreement
Reuters – Highlights of U.S. agreements with El Salvador, Guatemala, Ecuador & Argentina
SCOTUSBlog – IEEPA Tariff Authority Review https://www.scotusblog.com
SupplyChain360 – Supreme Court Questions Tariff Powers
https://supplychain360.io/supreme-court-questions-trumps-use-of-tariff-powers/
AP News – UP & NS Seek First Transcontinental Railroad https://apnews.com/article/b15664ec5cc55b985a0a32a1bf990d41
New Orleans City Business – Shareholders Approve Merger
The Guardian – Safety & Disruption Concerns
https://www.theguardian.com/us-news/2025/aug/25/union-pacific-norfolk-southern-railroad-merger
Reuters – FTAI Infrastructure to Buy Wheeling Corp
Daily News Egypt – Port & Rail Expansion
Global Trade Magazine – End of De Minimis