White House Barrels towards April 2

President Donald Trump has announced that broad reciprocal tariffs and sector-specific tariffs scheduled to take effect on April 2, will have "flexibility," as the drumbeat for exceptions and special treatment builds. “I don’t change. But the word flexibility is an important word,” he said. “Sometimes it’s flexibility. So there’ll be flexibility, but basically it’s reciprocal.”

Lutnik Endorses Export Controls, Greater Fines

Secretary of Commerce Howard Lutnick told trade practitioners to expect a significant increase in fines for export control violations and he called called for expanded cooperation with industry and allied governments to stem the flow of U.S. semiconductor technology to China. Speaking at the Bureau of Industry and Security (BIS) Update Conference, Lutnick directly accused Chinese artificial intelligence firm DeepSeek of acquiring U.S. chips through improper channels. “People took our chips and redirected them to China for money,” he said. “Sometimes it’s not that much money, and sometimes it’s a lot of money, but they’re seeking to destroy our way of life by assisting those who are against it.”

U.K., France and Switzerland Vow to Continue Anticorruption Efforts

Responding to the Trump Administration's recent endorsement of foreign corrupt business practices, three leading European anti-corruption agencies announced the formation of a collaborative effort to maintain law and order in the public integrity sphere.

Trade War Widens

On the same day that he slapped 25 percent tariffs on all imported steel and aluminum, President Trump made clear he is turning his sights on the European Union as his next target. Mr. Trump told reporters that he is “of course” going to raise tariffs even more on the EU after Brussels announced it is retaliating against the US steel and aluminum tariffs.

Welcome to Your WTTL

The Washington Tariff and Trade Letter introduces a web-based format for easier review, research and sharing. Clicking on a story in the newsletter will now bring you to the full text on our new web site. A .pdf version of the newsletter is available below. For any questions about website access and your subscription, please contact us at Info@TradeRegs.com – Or call the Editor, Frank Ruffing, at +1.703.283.5220

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Vol 45 No. 12 March 24, 2025

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Services in Focus

Outgoing chair of the World Trade Organization’s Council for Trade in Services Ambassador Syahril Syazli Ghazali of Malaysia is urging WTO members to intensify engagement on outstanding issues. Such issues include the mandated services waiver for least-developed countries while exploring flexibilities to achieve potential deliverables for next year’s 14th Ministerial Conference in Younde, Cameroon, said people familiar with the developments.

WTO: US to Consult; DG to Brussels; Agriculture

The United States has advised the World Trade Organization that it is ready to enter into consultations with China and Canada over their challenges to tariffs imposed by the Trump Administration. Director-General Ngozi Okonjo-Iweala is expected to visit Brussels to hold consultations on a range of issues, in the face of growing uncertainty arising from unilateral tariffs imposed by the Trump Administration. And Pakistan’s trade envoy to the World Trade Organization, Ambassador Ali Sarfraz Hussain, is being nominated as the chair of the Doha agriculture negotiating body, commonly referred to as the Committee on Agriculture in Special Session.

More trade & tariff news

Minerals Order to Expedite Permitting

President Trump signed an executive order Thursday directing a sweeping federal effort to expand domestic production of critical minerals, citing national security and economic independence as primary justifications. The measure invokes the Defense Production Act and targets key resources such as uranium, copper, potash, gold, and aluminum, with provisions that may extend to coal.

$4.7 Billion Mozambique Loan Resumed

The Export-Import Bank of the United States (EXIM) Board of Directors has unanimously approved a second amendment to a direct loan of up to $4.7 billion to support the export of U.S. equipment and services for an integrated liquefied natural gas (LNG) project in Mozambique. Originally authorized in 2019, the transaction had been delayed for four years and now moves forward with no material changes.

OFAC Recordkeeping Rule Final: 5 to 10 Years

The Office of Foreign Assets Control (OFAC) has finalized a rule extending the recordkeeping period under 31 CFR parts 501 and 515 from five to ten years. This change aligns with the amended statute of limitations for civil and criminal violations under the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), as enacted in Section 3111 of the 21st Century Peace through Strength Act.

On the calendar

Outbound Investment Bill Revived

Following Senate action last week, House Republicans reintroduced the bipartisan Foreign Investment Guardrails to Help Thwart (FIGHT) China Act. The legislation establishes a "comprehensive outbound investment screening regime that protects the savings and retirement accounts of hardworking Americans. The bill creates targeted restrictions to ensure U.S. investors are not unwittingly financing the CCP’s military and surveillance capabilities."

USTR Hearing on China's Maritime, Logistics & Shipbuilding

The Office of the United States Trade Representative (USTR) will hold a public hearing on March 24 and 26, 2025, as part of its Section 301 investigation into the People’s Republic of China’s targeting of the maritime, logistics, and shipbuilding sectors. While the hearing is on the record, external cameras and video recording are prohibited, and proceedings will not be livestreamed.

US Sides with Russia Again in Geneva

In a striking move, the United States took yet another step back from Ukraine and its allies by abstaining from a key vote at the International Labour Organization (ILO). This is the second such abstention in Geneva, following a similar move at the World Trade Organization last month. At the UN General Assembly, the US went even further, voting with North Korea and other Russian allies against a western-backed resolution denouncing the invasion and tabling a more conciliatory text, raising concerns that Ukraine may no longer rely on the US as a leading force to plead its cause at multilateral bodies.

Grab 'em by the BizJet

The United States has filed a civil forfeiture complaint in the Southern District of Florida against a Dassault Falcon 900 EX aircraft, tail number T7-ESPRT, used by Nicolás Maduro Moros and his regime in violation of U.S. sanctions and export laws. The aircraft was seized last year in the Dominican Republic at the request of the U.S.

Tariffs Creating Global Trade Uncertainty

Trade policy uncertainty and the prospect of more tariffs could disrupt global goods trade, according to a World Trade Organization report released this week. Global goods trade was steady in the fourth quarter of last year and appear to continue growing in the first months of 2025, but that could be undone by a looming global trade war.

Medical Supply Chain Bill

Legislation being championed by a bipartisan group of senators would encourage the Administration to engage in trade negotiations to ensure secure supply chains for medical goods and services.

Requests for Comment: Copper & Wood Products

Commerce has launched two separate investigations to assess the impact of copper and wood product imports on national security. Initiated under Section 232 of the Trade Expansion Act of 1962, these investigations will evaluate the reliance on foreign supply chains, potential risks to critical industries, and the feasibility of expanding domestic production. The Bureau of Industry and Security is soliciting public comments, with submissions due by April 1, 2025.