Former President Joe Biden's administration made the most “aggressive and far-reaching use” of trade tools of any U.S. administration in history, and the new Trump administration is on track to “wield these tools in an even more aggressive manner,” Gibson Dunn said in a 2024 international trade recap released this month. Although the Treasury Department under Biden imposed sanctions at a faster rate than any of his predecessors, the law firm noted that President Donald Trump favors tariffs, which could cause the targets of those tariffs, including U.S. trading partners in Europe and Asia, to deploy similar tools “either in retaliation against U.S. measures or in pursuit of their own strategic interests.”
Although the new administration appears to be gearing up to build on U.S. outbound investment restrictions against China, President Donald Trump’s affinity toward dealmaking means that tighter rules aren’t a guarantee, an analyst said. Other analysts said the U.S. will face challenges trying to convince its allies in Asia, including Japan and South Korea, to also impose restrictions on outbound deals in China.
The Bureau of Industry and Security has paused reviews of new export license applications submitted this month, without explanation, causing concern and frustration among exporters and trade compliance officials.
Japan has asked the Trump administration to exempt it from new 25% tariffs on steel and aluminum imports, Japanese Minister of Economy, Trade and Industry Yoji Muto said during a Feb. 12 press conference.
The U.S. needs to expand its export controls on semiconductor manufacturing equipment to focus on "foundational" chips and not just advanced ones, policy analyst Dmitri Alperovitch said.
The leaders of the House Select Committee on China criticized California-based Lam Research Feb. 10 for not providing documents the panel requested as part of its ongoing investigation on firms that sell semiconductor manufacturing equipment to China.
The Bureau of Industry and Security issued a correction this week to its January interim final rule that created new lists of trusted chip designers and service providers; imposed a broader, worldwide license requirement for chip foundries and packaging companies shipping certain advanced chips captured by Export Control Classification Number 3A090; and made other updates to its existing chip export controls (see 2501150040). The correction, effective Feb. 11, revises 3A090 to correct that ECCN's license requirement.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
EU lawmakers and the European Commission offered a strong rebuke this week of the U.S.’s latest export controls on advanced artificial intelligence chips, saying the restrictions could slow European AI technology innovation and set unfair buying restrictions across member states.
The first few weeks of the new Trump administration have shown that there appears to be a “fair amount of continuity” from the Biden administration on certain China trade policies, including around export controls and outbound investment restrictions, a former Biden National Security Council official said.