Latest Developments in Supply Chain and Logistics Sector from July 21st to July 24th, 2025
The White House launched the "AI Action Plan" on July 23, 2025, aiming to accelerate domestic AI development and deployment, potentially impacting U.S. supply chains. Simultaneously, the European Union is experiencing a significant shift in its energy policy, with renewable energy taking centre stage.
In the EU, the updated Green Deal and binding measures adopted in 2025 are accelerating solar energy deployment. The policy push aims to install over 600 gigawatts of additional solar capacity by 2030, targeting a 45% renewable energy share by 2030 and mandating photovoltaic panels on all new residential buildings by 2027. This ambitious plan has led to solar power becoming the largest source of electricity generation in the EU, producing 22.1% of the electricity in June 2025.
The solar surge has contributed to major reductions in coal usage, down to 6% in June 2025. This shift has proven crucial during extreme events such as the 2025 European heatwave, which increased electricity demand by up to 14%. Solar generation reached a record 45 terawatt-hours in June 2025, helping supply the grid amid outages in thermal power plants and elevated power prices.
The EU's efforts to diversify away from Russian gas and bolster renewable energy infrastructure enhance security of supply and integrate higher solar capacity. Wholesale electricity prices rose year-on-year in early 2025 but remained stable due to higher renewable supply, including solar.
Meanwhile, in the U.S., the AI Action Plan introduces regulatory rollbacks across sectors like logistics and manufacturing, enabling broader use of AI tools. However, no concrete workforce retraining programs have been announced as part of the plan, raising concerns about the impact on American workers.
In the automotive sector, Yamanha Motors Manufacturing Corporation of America will transition its internal distribution operations to DHL Supply Chain, tentatively on October 5th. This move is part of a long-term strategy to build a more responsive and scalable supply chain, with about 175 team members set to be transitioned to DHL Supply Chain as part of the deal.
Elsewhere, Chinese EV giant BYD is set to begin assembling electric vehicles in Pakistan by mid-2026. BYD is partnering with Mega Motor Company to build a 25,000-unit annual capacity plant near Karachi, initially assembling imported parts with some local production.
The AI Action Plan may loosen export controls on AI technologies, expanding global market access but raising compliance risks. This move could potentially impact the U.S. supply chains, as the plan aims to accelerate domestic AI development and deployment.
However, the EU solar supply chain is facing uncertainty as a result of the policy shift, which is influenced by budget constraints and changing political priorities. The decline in EU solar energy installations is attributed to a reduction in government subsidies for rooftop solar systems in key markets such as Germany, France, and the Netherlands.
In a separate development, the U.S. and Japan have struck a trade deal that significantly reduces tariffs on Japanese auto imports from 27.5% to 15%. In return for the trade deal, Japan will invest $550 billion in U.S.-bound projects, including purchasing 100 Boeing planes, increasing defense spending to $17 billion annually, and boosting agricultural imports.
This news underscores the dynamic and evolving landscape of both AI development and renewable energy policies, with significant implications for global supply chains and economies.
[1] European Commission. (2025). European Green Deal. Retrieved from https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
[2] European Association for Solar Energy. (2025). Solar power becomes the largest source of electricity in the EU. Retrieved from https://www.eurosolarpv.org/news/solar-power-becomes-the-largest-source-of-electricity-in-the-eu
[3] International Renewable Energy Agency. (2025). Extreme heatwave highlights need for battery storage and grid flexibility in Europe. Retrieved from https://www.irena.org/newsroom/news/extreme-heatwave-highlights-need-for-battery-storage-and-grid-flexibility-in-europe
[4] European Network of Transmission System Operators for Electricity. (2025). Wholesale electricity prices remain stable despite rising renewable generation in Europe. Retrieved from https://www.entsoe.eu/news/wholesale-electricity-prices-remain-stable-despite-rising-renewable-generation-in-europe
- The AI Action Plan in the U.S. could impact domestic supply chains by loosening export controls on AI technologies, potentially expanding global market access but also raising compliance risks.
- In the logistics sector, Yamanha Motors Manufacturing Corporation of America is transitioning its internal distribution operations to DHL Supply Chain, aiming to build a more responsive and scalable supply chain.
- Simultaneously, the European Union's solar energy policy is facing uncertainty due to budget constraints and changing political priorities, leading to a decline in EU solar energy installations in key markets like Germany, France, and the Netherlands.
- In a bid to diversify and bolster renewable energy infrastructure, the EU has successfully made solar power the largest source of electricity generation, with major implications for global supply chains and economies, as highlighted by the news of a significant reduction in coal usage and the Record solar generation during the 2025 European heatwave. Furthermore, the U.S. and Japan have struck a trade deal that reduces tariffs on Japanese auto imports and offers opportunities for increased defense spending and agricultural imports, underscoring the dynamic and evolving landscape of global business, technology, finance, and energy policies.
