On January 20, 2025, President Trump issued Executive Order (E.O.) 14157, "Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists." Such designations will increase the penalties and other consequences for companies and individuals providing "material support" to the designated entities. This development will impact the legal and compliance risks companies face when doing business in Mexico, Central America, and other parts of Latin America where cartels are active. The difference of an FTO designation is that it now implicates companies and individuals with new and specific criminal law provisions for material support of the designated entities that do not currently exist under an SDN designation. One should expect to see more criminal prosecutions in the U.S. against non-U.S. companies and individuals.
What are we to make of the chaos being promulgated by the Trump White House as it settles in to governing? Check back tomorrow; we'll have a new answer. From eliminating Valentine's Day roses, guacamole for the Super Bowl, the North American automotive industry, and America's compulsion for flimsy fast fashion, the Administration's "flood the zone" policy prescription has generated much heat and chatter, only to be walked back by weekend. Friday President Trump continued the drumbeat, promising more tariff announcements to come “I’ll be announcing that next week. Reciprocal trade so that we’re treated evenly with other countries. We don’t want any more or any less,”
Japan’s Nippon Steel and the US Steel Corporation are continuing the fight against the Biden Administration’s decision to block their proposed $14.9 billion merger. The two companies filed their opening brief with the US Court of Appeals for the District of Colombia Circuit arguing that President Biden halted the merger for political reason and not because of a national security threat. The two companies said in a statement that the merger “will enhance, not threaten, United States’ national security, protect US Steel workers, revitalize jobs in communities that rely on American steel and make American Steel bigger and better.
Sens. Elizabeth Warren (D-Mass) and Josh Hawley (R-Mo) are calling on the Commerce Department to beef up export controls on China. In a letter to Commerce Secretary nominee Howard Lutnick, the two members of the Banking Committee said the Administration needs to strengthen export controls and close regulatory loopholes that are undercutting US technology leadership against challenges from China.
In today's global business environment, companies must navigate a complex web of sanctions regulations. The stakes are high, and the consequences of non-compliance can be severe. This article outlines key considerations for companies navigating the era of heightened sanctions enforcement identified by Baker McKenzie's Global Sanctions Investigations Group from its involvement in many such investigations.
China has responded to Washington’s imposition of a 10 percent tariff on all Chinese imports with a mix of retaliatory measures, including targeted tariffs, World Trade Organization (WTO) challenges, and diplomatic overtures. After President Trump announced a blanket tariff on China Tuesday, China's Finance Ministry declared 15 percent levies on US Coal and LNG and 10 percent on crude oil, farm equipment and some autos. Beijing also restricted exports of five critical minerals: tungsten, tellurium, bismuth, molybdenum, and indium.
The trade group representing 270 American companies operating in China, announced its policy priorities for US-China commercial relations. "With new US leadership, USCBC sees a fresh chance to address structural issues in China’s economy that disadvantage American businesses, workers, and farmers," states The US-China Business Council (USCBC) in announcing the report. The report calls for ensuring the enforcement of China’s “phase one” commitments, preserving China’s permanent normal trade relations status, and "recalibrating national security restrictions" Including reversing the AI Diffusion Rule introduced at the close of the prior administration.
A European Commission report assessing patterns of Member-State exports of dual-use items shows that both authorisations and denials for the export of those most sensitive goods is on the rise as compared to 2021. The report includes, for the first time, extensive information on licensing data that will allow for a better understanding of how export controls are applied, and the risks identified relating to exports of sensitive items in the current geopolitical context.
The Justice Department announced Thursday that Dominican Republic authorities seized a Dassault Falcon 2000EX aircraft used by Petroleos de Venezuela, S.A. (PdVSA), the sanctioned Venezuelan state-owned oil and natural-gas company, at the request of the U.S. government based on violations of U.S. export control and sanctions laws. The Justice Department previously announced in September 2024 the seizure of a Dassault Falcon 900EX aircraft in the Dominican Republic that was owned and operated for the benefit of Nicolás Maduro Moros and persons affiliated with him in Venezuela.
The Trump administration’s pledge of across-the-board tariffs have many U.S. companies concerned about higher-priced inputs and disrupted supply chains. This article explores the insurance coverage options, such as political risk insurance and trade credit insurance, that can offer coverage to protect against and mitigate trade-related risks. This article also provides advice on how policyholders can maximize coverage should a loss occur, and further discusses the impact that tariffs might have on the insurance market, including premiums for certain types of insurance lines.
A federal grand jury returned a superseding indictment February 4, charging a Chinese national with seven counts of economic espionage and seven counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC proprietary information related to AI technology. Linwei Ding, also known as Leon Ding, 38 was initially indicted in March 2024 on four counts of theft of trade secrets. The superseding indictment describes seven categories of trade secrets stolen by Ding and charges Ding with seven counts of economic espionage and seven counts of theft of trade secrets.
House China hawks called for the National Security Advisor to review the potential national security benefits of placing export controls on semiconductor chips critical to the AI infrastructure of People's Republic of China (PRC) company, DeepSeek. As part of the review, the lawmakers also asked to strengthen controls on shipments through third countries that pose a high risk of diversion to the PRC. The lawmakers further requested that Mr. Waltz consider updating Federal Acquisition Regulations to prohibit the federal government from acquiring AI systems based on PRC models such as DeepSeek, except for appropriate intelligence and research purposes.
The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) assessed a $37,000,000 civil money penalty against Brink’s Global Services USA, Inc. for willful violations of the Bank Secrecy Act (BSA). As a result of Brink’s failures, hundreds of millions of dollars in bulk currency shipments were transmitted across the Southwest Border on behalf of high-risk entities—including a Mexican currency exchanger that later pleaded guilty to violating the BSA. This is FinCEN’s first enforcement action against an armored car company.
Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on an international oil smuggling network that has facilitated the shipment of millions of barrels of Iranian crude oil, worth hundreds of millions of dollars, to the People’s Republic of China (PRC). This action aligns with the February 4 National Security Presidential Memorandum, which mandates maximum economic pressure on Iran to prevent its nuclear advancement and regional destabilization.
Her first full day as Attorney General, Pam Bondi issued a raft of policy changes, including a memorandum outlining the new administration's policies on charging, plea negotiations and sentencing. Tacked onto the end of the five-page memo, Ms. Bondi continued the purge of the National Security Division, disbanding the Foreign Influence Task Force and the National Security Division's Corporate Enforcement Unit, and instructing the Counterintelligence and Export Control Section to "focus on civil enforcement, regulatory initiatives, and public guidance." Another memo directs FCPA directs prosecutors to prioritize the investigation drug cartels and transnational criminal organizations (TCOs) and to “shift focus away from cases that do not involve such a connection.”
Shippers were whipsawed by the news cycle as the White House rolled out its America First Trade Policy, with Presidential actions caroming from Colombia to Canada and Mexico, finally settling on China. More fulsome in scope than previous actions, included are measures ensuring e-commerce heavyweights Temu, Shein and Amazon will no longer be able to take advantage of what House Ways and Means Committee Chair Jason Smith has described as a “free trade agreement with China.”
Tuesday February 4th the White House issued a National Security Memorandum (NSM) directing multiple federal agencies to impose maximum pressure on the Government of the Islamic Republic of Iran. The memorandum outlines aggressive measures aimed at denying Iran all paths to a nuclear weapon, countering its regional influence, and disrupting its financial and military networks. The document, addressed to senior U.S. officials including the Secretaries of State, Treasury, Defense, and Homeland Security, mandates immediate actions to intensify economic, diplomatic, and law enforcement measures against Iran.
The Commerce Department, International Trade Administration (ITA) released their The Defense Export Handbook, a toolkit for U.S. defense exporters, particularly those who are new-to-market or new-to-export. This handbook provides an overview of U.S. defense trade policies, rules, regulations, and national laws governing the sale of U.S. defense products; tips to navigate these policies and processes that help carry out defense trade opportunities; and general things to consider as a U.S. exporter when evaluating international markets.
January 27, Canada announced it is imposing new sanctions against 10 individuals and 12 entities under the Special Economic Measures (Belarus) Regulations in response to ongoing gross and systematic human rights violations committed by the Lukashenko regime in Belarus, as well as its support of Russia’s violation of Ukraine’s sovereignty and territorial integrity. These sanctions are being announced in coordination with the United Kingdom. Customarily, such announcements are coordinated with US sanctions authorities in the Departments of State and Treasury., but action in Washington was lacking
Trump’s Tariff Man at Commerce, Howard Lutnick, is making no bones about the fact that he is a fan of President Trump’s idea of across-the-board tariffs on all countries. At a hearing on his nomination before the Senate Commerce Committee last week, several senator expressed a preference for targeted tariffs. But the nominee for Commerce Secretary, said across-the-board tariffs are the way to get “reciprocity, respect and fairness” from other countries. The 25 percent tariff hike that President Trump says he plans to impose on Canada and Mexico on February 1 is not really a tariff “per se,” Mr. Lutnick said, but rather it’s about “creating action.”