A fly on the wall at an executive retreat for Acme Super Duper Widget Company overhears the following conversation between Pete, the CFO, and Saira, the General Counsel.
The CTPAT portal has been a work in progress for a number of years with the latest portal update (3.0) launched at the end of 2023. Let’s take a few minutes to explore a few strategies for best outcomes while avoiding common challenges and the SCSS response request for “more information”.
Those who cannot remember the past are condemned to repeat it.” – George Santayana. As an example of this I present to you the Smoot-Hawley Tariff Act of 1930. If you are not familiar with this, it is worth taking a moment to research.
Recently, President Biden signed a foreign military support bill (H.R. 815) into law, which also encompassed the 21st Century Peace Through Strength Act (the Act), a legislative proposal introduced in the House containing various U.S. sanctions-related measures. These sanctions measures extended the statute of limitations (“SOL”) from five to ten years for civil and criminal violations of sanctions programs administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”).
The new world order apparently has some merit as more than 30 nations have reportedly submitted applications to join the BRICS alliance wanting to reduce reliance on the US dollar. This wave of applications is a testament to the trust in the BRICS alliance as a viable option to a traditional economic structure. The BRICS alliance has broad shoulders and is representative of considerable economic growth.
On May 14, 2024, the United States Trade Representative (USTR) released its Final Report relating to the four-year review of actions taken in the Section 301 investigation. Within the Report, the USTR confirmed that it intends to take actions to raise tariffs on specific products as a result of the comprehensive review.
Canada has long enjoyed International Traffic in Arms Regulations (ITAR) license exemptions and minimal controls for items subject to the Export Administration Regulations (EAR). What about some of our other friends, such as Australia and United Kingdom? There are ITAR license exemptions for these countries in Parts 126.16 and 126.17 of the ITAR.
The United States Trade Representative (USTR) recently released a list of Section 301 exclusions that would be extended through May 31, 2025. Within the Notice, the USTR explained that extending these exclusions will support efforts to shift sourcing out of China, or provide additional time where, despite efforts to source products from alternative sources, availability of the product outside of China remains limited.
China’s foreign direct investment (FDI) in Mexico has seen substantial growth in recent years, reflecting a strategic alignment with global economic shifts and regional trade dynamics. This trend positions China as one of the fastest-growing sources of foreign investment in Mexico, with the majority of investments flowing into the manufacturing sector.
Digital assets, including blockchain and cryptocurrency protocols and companies, have been in a defensive posture for much of 2022, 2023 and 2024. The collapse of crypto exchange FTX and numerous enforcement actions taken by the Securities Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) have forced the sector to retrench and upgrade their abilities to meet the higher standards of securities laws.
The President signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025’or ‘‘GENIUS Act of 2025’” (the Act) on July 18, 2025. The new law establishes a basis for regulators to permit a variety of bank and non-bank entities to issue payment stablecoins that will be used for payments and reserves for a variety of purposes. This analysis covers the major provisions of the new law.
Since taking office on January 20, 2025, the Trump Administration has undertaken an aggressive trade policy that has impacted, and will continue to impact, all countries trading with the US. Many of the actions seek to reverse the established principles of trade policy that have been supported by both political parties, enshrined in the rules of international agreements and organizations, and regulated by executive branch agencies since the end of World War II.
From a Mexican resident’s perspective, who is also involved in international trade, it appears that since the Trump administration took office, the global economic scenario has been altered by an escalating trade war, characterized by the imposition of tariffs by the U.S. government, on a range of countries. These measures, intended to safeguard the U.S. interests, have affected the relationships with certain international markets, as the U.S. is showing signs of progressive isolationist practices.
My internship in Mexico was with the Servicio de Administración Tributaria (SAT), the office responsible for applying tax and customs legislation, which facilitates trade through customs administration. With its influence extending across both the public and private sectors, SAT stands at the forefront of Mexico’s efforts to promote transparency, efficiency, and fiscal responsibility. My internship experience within this institution offered invaluable insights into its operations and the impact it has on the nation’s economic landscape.
It comes as no surprise China has been a major focus point of the second Trump administration. One of the key reasons for this focus is the increasing national security concerns over technology. In particular, the smuggling of AI chips, which China intends to use in developing advanced AI systems for military purposes and surveillance.
Question 1: How are you advising businesses in your jurisdiction when protecting themselves from the impact of trade wars and sanctions, and what strategies can professional services firms offer to mitigate these risks?
If I heard it once, I’ve heard it a thousand times, China is the sourcing capital of the world. I’ve also repeated this statement at least 400+ times in many conversations over the years regarding global trade. China, it’s also where the global market goes for rare earth minerals, among thousands of other necessary elements for a veritable plethora of life’s essential things.
On April 2, 2025, President Trump announced reciprocal tariffs, setting a baseline rate of 10% on imports from all countries, with higher rates on dozens of countries which the United States (U.S.) runs trade deficits. Specifically, Trump imposed a 34% tariff on all Chinese imports in response to China’s 67% tariff and non-tariff barriers on U.S. exports, aiming to address what he sees as an unfair trade imbalance.
Since Trump’s first term, tensions between the United States and China, the world’s two largest economies, have been on the rise. President Trump ran for his second presidential term on a promise to reduce reliance on China – and promise kept. In one of his first Presidential actions, President Trump issued an “America First Trade Policy” memorandum dedicating an entire section to trade relations with China. Since then, several tariffs have been imposed on Chinese goods and the duty-free de minimis treatment for goods valued at $800 or less ended.
In a recent Federal Register notice the Bureau of Industry & Security (BIS) of the Department of Commerce announced that “On May 1, 2025, the Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of commercial aircraft and jet engines, and parts for commercial aircraft and jet engines. This investigation has been initiated under section 232 of the Trade Expansion Act of 1962, as amended (Section 232).” The investigation may take up to 270 days but it can be concluded sooner.