US rail giant Union Pacific is exploring a massive merger with either CSX or Norfolk Southern, according to sources familiar with the matter. The potential deal would create a coast-to-coast carrier and significantly boost the country’s industrial competitiveness.
The talks are taking place as part of an effort by President Trump to push through a series of mergers, despite previous skepticism from regulators. Industry participants see this development as a way to increase efficiency and competitiveness in the rail sector.
A merger between Union Pacific and either CSX or Norfolk Southern would be worth tens of billions of dollars and could potentially create the first coast-to-coast carrier in the US. The deal would require multiple regulatory approvals, including from the Surface Transportation Board and the Justice Department.
Critics argue that the proposed merger is a classic example of “be careful what you wish for,” as it may lead to a loss of competition in the rail sector. However, proponents of the deal see it as a necessary step to modernize US infrastructure and improve the country’s industrial competitiveness.
The US retail sector has seen a surge in sales in June, with broad-based gains last month, particularly at auto dealerships. However, analysts warn that inflation remains a concern, and some of the rebound may reflect rising prices rather than increased consumer demand.
Meanwhile, the US seeks to tamp down trade war concerns, but experts caution that Washington’s protectionist direction has not changed. Canada has announced new steel tariffs, while France is reportedly gaining support within the European Union for a harder line against pressure from Washington.
In other news, China’s yuan is increasingly being used in developing nations in Asia and Africa, potentially challenging the dominance of the US dollar. The world’s first “three-parent babies” are living healthy lives, a landmark study found, potentially meaning an end to mothers passing rare diseases to their children.
US President Donald Trump has threatened new tariffs on pharmaceuticals and chips, adding to the spiraling trade war that is driving global instability. France is mulling public holiday cuts to tackle its budget deficit, while Mexico’s president urged Washington to curb drug traffickers and gun flows. The UK secretly relocated thousands of Afghans after their details were accidentally leaked.
These developments come as Nvidia CEO Jensen Huang praised China’s technological advancements during a visit to Beijing, while Trump announced a preliminary trade deal with Indonesia.
Source: https://www.semafor.com/article/07/16/2025/union-pacific-has-hired-bankers-for-possible-railroad-bid