Your Korean dogwood (Cornus kousa 'Milky Way') shows classic signs of transplant shock compounded by overwatering. Daily watering—even with good drainage—keeps the root zone constantly saturated, depriving roots of oxygen and encouraging root rot. The tree's energy is diverted to root survival rather than leaf and flower production.
While 'Milky Way' tolerates sun, in the Pacific Northwest it prefers morning sun with afternoon shade. If the site is intensely hot from 11 a.m. to 8 p.m., consider providing temporary shade cloth during the hottest weeks.
Look for new leaf buds swelling along branches and a gradual increase in leaf size. If the tree leafs out sparsely this year but shows healthy buds for next spring, it's on track.
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