April 2025

BIS Initiates 232 Investigations of Pharmaceuticals and Semiconductors

The U.S. Department of Commerce Bureau of Industry and Security (BIS) announced the initiation of investigations into the effects on U.S. national security of imports of pharmaceuticals and pharmaceutical ingredients and imports of semiconductors and semiconductor manufacturing equipment.

The basis of the investigations is Section 232 of the Trade Expansion Act of 1962. Under Section 232, the president can restrict imports of products that are found to threaten to impair national security.

On April 16, BIS published two federal register notices (pharmaceuticals, semiconductors) seeking public comment. Comments are due May 7, 2025.

Pharmaceuticals and Pharmaceutical Ingredients

The scope of the pharmaceutical investigation covers pharmaceuticals and pharmaceutical ingredients, including:

  • Finished drug products
  • Medical countermeasures
  • Critical inputs such as active pharmaceutical ingredients
  • Key starting materials, and derivative products of those items

Among other information, BIS is particularly interested in comments that address:

  • Demand for pharmaceuticals and pharmaceutical ingredients in the United States
  • The extent to which domestic production of pharmaceuticals and pharmaceutical ingredients can meet domestic demand
  • The role of foreign supply chains, particularly of major exporters, in meeting United States demand for pharmaceuticals and pharmaceutical ingredients
  • The impact of foreign government subsidies and predatory trade practices on United States pharmaceuticals industry competitiveness
  • Whether additional measures, including tariffs or quotas, are necessary to protect national security

Interested parties may submit a comment in this proceeding on or before May 7, 2025 at Regulations.gov using ID BIS-2025-0022.

Semiconductors and Semiconductor Manufacturing Equipment

The scope of the semiconductor investigation covers semiconductors, semiconductor manufacturing equipment, and their derivative products, […]

Breaking Trade News: 125% China Tariffs, Reciprocal Tariff Pause, New WRO

Here is a recap of the latest customs and international trade news:

Administration  

  • President Trump increased tariffs on all Chinese goods to 125%. CBP subsequently issued guidance implementing the new tariff. 
  • President Trump paused reciprocal tariffs on all countries (except China) for 90 days. 
  • President Trump signed an Executive Order titled “Restoring America’s Maritime Dominance” that requires several agency heads to submit a Maritime Action Plan (MAP) within 210 days. 
  • President Trump signed an Executive Order increasing tariffs applicable to postal shipments. The order increases the tariff on postal shipments from China and Hong Kong that would otherwise qualify for de minimis, to 90%, or $75 per package. On June 2, the flat rate will increase to $150. 
  • At a press conference in the Oval Office, President Trump announced that tariffs on pharmaceuticals will be implemented “very soon.” 
  • President Trump signed an Executive Order targeting the law firm Susman Godfrey. The order suspends the security clearances of members of the firm and directs a review of federal contracts held by the firm’s clients. 

Customs and Border Protection (CBP) 

By |2025-04-11T10:08:49-04:00April 11, 2025|news, Snapshot|0 Comments

New 104% China Tariff – U.S.-China Standoff Intensifies

On April 8, 2025, President Trump issued an executive order imposing additional tariffs on Chinese imports after China failed to drop its retaliatory tariffs on U.S. goods. The order amends the Administration’s original reciprocal tariff of 34%, increasing it to 84%. This applies on top of the 20% tariff imposed in March, bringing the total tariff on all imports from China to 104%, effective April 9, 2025.

China has already implemented countermeasures in response. China’s Office of the Tariff Commission of the State Council announced that tariffs on U.S. goods will rise to 84% starting on April 10.

Foreign Ministry spokesperson Lin Jian called the Administration’s actions “bullying” said Beijing will take “firm and forceful” steps to protect itself. The Commerce Ministry said it would “fight till the end” in the event of a trade war.

President Trump acknowledged that the imposition of the tariffs has been “somewhat explosive” but defended the approach, saying that the Administration is open to making deals.

Diaz Trade Law will continue to monitor the situation for updates. If you are an importer of Chinese goods, there are actions you can take. Check out our webinar on minimizing tariffs here.

Read more:

By |2025-04-09T09:04:40-04:00April 9, 2025|tariffs|0 Comments

Tariffs are Bad, So Are Non-tariff Barriers

We are pleased to share our latest feature in the National Interest! View the original article here.

Jennifer Diaz – Board-certified international attorney and President of Diaz Trade Law
Jerry Haar – Professor and Executive Director, The Americas, Florida International University – College of Business

Tariffs, which Donald Trump once called “the most beautiful word in the dictionary,” constitute the centerpiece of his administration’s trade and economic policies. The tariff theme featured prominently in the president’s State of the Union address on March 4 and represents a clear article of faith for him. The April 2  “Liberation Day” announcement of new sweeping tariffs makes it crystal clear that the president means business.

New U.S. tariffs on goods from Canada, Mexico, and China are estimated to increase tax revenue by $600–650 billion over ten years. The cost to American households in raised prices would be equivalent to a $2,100 tax hike, according to the Tax Foundation.

However, “non-tariff barriers”—impediments to free market commerce that are far more pernicious than tariffs are absent from the discussion on tariffs. These policy-related measures that can restrict trade between countries include quotas, licensing requirements, import bans, subsidies, customs procedures, technical regulations, and standards.

In the global context, non-tariff barriers to trade (NTBs) can increase the cost of trade by raising compliance costs, delaying shipments, and adding layers of bureaucracy. For example, […]

By |2025-04-12T09:31:25-04:00April 9, 2025|tariffs|0 Comments

Reporting, Requestor List, Penalties: Antiboycott Laws Explained

The United States enforces antiboycott laws designed to address foreign government’s economic boycotts of countries friendly to the U.S. Antiboycott laws have been on the books since the 1970s and are primarily enforced by the U.S. Department of Commerce’s Bureau of Industry and Security.

What Are the U.S. Antiboycott Laws?

“Anti-boycott” refers to U.S. laws and regulations that discourage and, in certain cases, prohibit U.S. persons from participating in unsanctioned foreign boycotts, particularly those targeting countries friendly to the United States.

BIS is charged with administering and enforcing this policy under the Anti-Boycott Act of 2018, the Export Control Reform Act of 2018, and the Export Administration Regulations.

The antiboycott laws aim to prevent U.S. persons from advancing foreign policies of other nations that run counter to U.S. policy.

Prohibited Antiboycott Activities Under the EAR

Part 760 of the EAR specifies prohibited antiboycott activities including:

  • Refusals or agreements to refuse to do business with or in a boycotted country or with blacklisted companies.
  • Discrimination or agreements to discriminate against a U.S. person based on race, religion, sex, or national origin.
  • Furnishing information or agreements to furnish information about business relationships with or in a boycotted country or with blacklisted companies.
  • Furnishing information or agreements to furnish information about the race, religion, sex, or national origin of a U.S. person.
  • Implementation of letters of credit containing prohibited boycott terms or conditions.
  • Taking actions with the intent to evade Part 760 of the EAR.

Required Reporting        

Section 760.5 of the EAR requires […]

Go to Top