China

For the latest Trump trade executive actions, please view the below Torres Trade Trump Table for important information. This table will be monitored and updated regularly. The last update occurred September 11, 2025.

This article provides an overview of the most recent tariff updates affecting businesses operating within the semiconductor, pharmaceutical, and critical mineral industries. Below we outline recent tariff exclusions for semiconductor products and new investigations into certain semiconductors, pharmaceuticals, and critical minerals which can lead to higher tariffs for these product groups. Industries affected by the newly launched investigations should consider filing a public comment.

On April 9, 2025, President Trump issued an Executive Order “Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment” (“the E.O.”) amending prior executive orders imposing “reciprocal tariffs” on all imports of foreign-origin goods pursuant to the President’s authority under the International Emergency Economic Powers Act (“IEEPA”). The E.O. announced partial relief from the new reciprocal tariffs for all U.S. trading partners, except for China, which will now be subject to a total tariff rate of up to 170%.

90-Day Pause on Country-Specific Tariff Rates

Beginning just after midnight on March 4, 2025, the United States implemented a 25% tariff on imports from Canada and Mexico (except Canadian “energy resources,” which are subject to a 10% tariff), and increased tariffs on China from 10% to 20%. These tariffs are implemented under the International Emergency Economic Powers Act (IEEPA) pursuant to national emergencies declared by President Trump related to the influx of illegal immigrants and drugs, particularly fentanyl, into the United States. For additional background on the initial actions, please see our previous trade alert, Tariffs on Mexico and Canada Delayed; China Retaliates Against 10% Tariff.

On February 21, 2025, President Trump issued a memorandum titled "America First Investment Policy" (the “Policy”), outlining new measures to shape U.S. investment policy. Though the Policy makes it clear that the United States welcomes foreign investment, its overarching theme is that “economic security is national security” and cautions against national security threats from “foreign adversaries” like the People’s Republic of China.

President Donald Trump has agreed to delay the implementation of tariffs on imports from Mexico and Canada for 30 days, following negotiations with the leaders of both countries. For more information about the threatened tariffs, see yesterday’s trade alert, U.S. Imposes Tariffs on Imports from Canada and China Beginning February 4; Mexican President Announces One Month Implementation Delay (published before the announcement of the delay of tariffs on Canada). The decision to delay implementation comes after Mexico and Canada committed to enhance border security and combat the flow of fentanyl into the United States.

On February 1, 2025, President Trump announced significant new tariffs on imports from Mexico, Canada, and China, set to take effect on February 4, 2025. The tariffs were announced via three separate Executive Orders (EOs) and are imposed on Canada to “Address the Flow of Illicit Drugs Across [the] Norther Border,” on Mexico to “Address the Situation at [the] Southern Border,” and on China to “Address the Synthetic Opioid Supply Chain in . . . China.” Importantly, unlike tariffs on China implemented under Section 301 of the Trade Act of 1974 (Section 301) in the first Trump administration, the new tariffs are imposed under the International Emergency Economic Powers Act (IEEPA) and are pursuant to a national emergency declared by President Trump.

This article will provide a brief overview of EO 14105 and proposed implementing rules, as well as related legislative developments focused on outbound investment screening, and the outlook for outbound investment screening procedures.

*Reproduced with permission from the State Bar of Texas International Law Section. This article was first published in August 2024.

On January 13, 2025, the Department of Commerce Bureau of Industry and Security (BIS) announced new rules restricting the export of advanced artificial intelligence (AI) chips and certain closed AI model weights in an expected move that was preemptively criticized by giants in the tech and semiconductor industries. The 168-page “Framework for Artificial Intelligence Diffusion” interim final rule (the “Rule”) adds a global licensing requirement for the export of advanced AI chips and closed AI model weights but with certain exclusions for some allied countries. Compliance with most portions of the new rule is required by May 15, 2025, and interested persons may submit public comments on the rule until May 15, 2025.

On December 2, 2024, the U.S. Department of Commerce Bureau of Industry and Security (“BIS”) issued two new rules further restricting China’s capability to produce advanced semiconductors. One final rule (the “Entity List Updates Rule”) adds 140 entities to the BIS Entity List and assigns 16 entities the new Footnote 5 designation. Concurrently, an interim final rule makes several changes to the Export Administration Regulations (“EAR”), including adding new Foreign Direct Product (“FDP”) rules, adding or modifying several Export Control Classification Numbers (“ECCNs”) on the Commerce Control List (“CCL”), adding new license exceptions, and other revisions.

On December 23, 2024, the Office of the United States Trade Representative (USTR) launched an investigation of China’s acts, policies, and practices related to targeting of the semiconductor industry for dominance. The investigation was launched under Section 301 of the Trade Act of 1974.

As deals increase in complexity, and ownership structures are oftentimes opaque and obfuscated, it is important to be mindful of CFIUS’s continued stance of requesting identities of Limited Partners (LPs) in transactions involving investments funds.

In the past five to six years, more transactions being reviewed by CFIUS involve venture capital and private equity deals. This results in more complex ownership reviews, including CFIUS reviewing LPs in investment funds. In its 2024 Annual CFIUS Conference in Washington, D.C., CFIUS emphasized the need to provide information regarding LPs. 

On November 25, 2024, President-elect Donald Trump provided some additional clarity on his immediate tariff plans in a post on Truth Social. Specifically, Trump announced his intent to sign an Executive Order on his first day in office to impose a 25% tariff on all products from Mexico and Canada. According to the post, the tariff will remain in effect for an indefinite period tied to fentanyl smuggling and illegal immigration. In a separate post, President-elect Trump also announced his intention to add a 10% tariff “above any additional tariffs” on all Chinese-origin products. Factoring in current 25% Section 301 tariffs on Chinese goods, this means that some Chinese products will be subject to a 35% tariff in addition to their normal duty rate. Trump similarly tied this tariff hike to China’s role in the fentanyl crisis.

A second Donald Trump presidency ushers in a moment in international trade without precedent…other than the first Trump presidency. It is often difficult to predict how a new administration will act, but in this case, the “new” president has previously shown that he does not always conform to the typical expectations of the office, particularly with respect to international trade. Below we outline a few initial impressions on the potential impacts the Trump presidency will have on global relationships and discuss how you can prepare for the new administration.

On October 28, 2024, the Treasury Department unveiled its final outbound rule, which regulates U.S. investment in China. According to experts, the rule could actually ensnare U.S. companies, particularly if they have significant Chinese ownership or significant financial connections to China. Managing Member, Olga Torres, shares her key highlights with Foreign Investment Watch.

*Reproduced with permission from Foreign Investment Watch. The article was first published on November 1, 2024.

Just in time for Spooky Season, the Biden Administration announced executive actions related to the much used – and much lamented, depending on who you ask – de minimis exemption, which allows shipments valued at $800 or less to enter the United States duty-free and with reduced information requirements. Among other changes, the executive actions propose to remove de minimis treatment for merchandise subject to Section 301 Chinese-origin goods.

On July 23, 2024, the Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”) released its annual report to Congress regarding the Committee’s national security reviews and investigations of certain foreign investment transactions from the preceding year. The report offers valuable insight into the CFIUS review process and highlights the various foreign investment transaction elements that are coming under scrutiny. Even with an overall decrease in global merger and acquisition activity in 2023, CFIUS activity was still significant.

On May 22, 2024, the United States Trade Representative (“USTR”) announced the publication of a Federal Register Notice (“the FRN”) setting forth additional and increased Section 301 tariffs for specific Harmonized Tariff Schedule of the U.S. (“HTSUS”) subheadings. In addition, the FRN provides details on products subject to potential exclusions from the tariffs and establishes a period for interested parties to provide comments on the tariff modifications and potential exclusions.

On May 14, 2024, the United States Trade Representative (“USTR”) announced the publication of its long-awaited report on the Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (“the Report”). Considering the reported efficacy of the tariffs as strategic measures to counteract adverse Chinese policies and practices, and findings that unfair practices persist, President Biden and the USTR are now set to take further action related to Section 301 tariffs on Chinese-origin goods.

On April 17, 2024, the United States Trade Representative (“USTR”) initiated an investigation pursuant to Section 301 of the Trade Act of 1974 (“Section 301”) regarding China’s acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sector. The investigation was initiated following the filing of a petition (“Petition”) by several domestic labor unions (“Petitioners”) representing these industries. The USTR encourages interested parties to submit comments on any issue covered by the investigation. Comments are due by May 22, 2024.

On December 26, 2023, the Office of the United States Trade Representative (“USTR”) announced the extension to May 31, 2024, of all current exclusions from Section 301 tariffs on Chinese-origin goods. The extended exclusions include 77 COVID-related exclusions and 352 previously reinstated exclusions. 

In 2016, the United States implemented legislation revising 19 U.S.C. § 1321 (“Section 321”) and thereby increasing the de minimis amount for imports into the United States from $200 to $800, meaning an importer is not required to pay duties if the merchandise has a fair market retail value at or below $800. In 2018, the U.S. began imposing a 25% tariff on most goods from China. The convergence of these two issues – the ability to import duty-free under $800 and the steep duties applicable to Chinese goods – led many vendors of Chinese merchandise to take advantage of Section 321 de minimis treatment for certain imports.

On October 17, 2023, the U.S. Department of Commerce Bureau of Industry & Security (“BIS”) released three rules amending the Export Administration Regulations (“EAR”) to strengthen export controls on advanced computing semiconductors and semiconductor manufacturing equipment to arms embargoed countries, including the People’s Republic of China (“China”), and to place certain additional entities in China on BIS’s Entity List. 

Industry is well aware of the final rule published on April 28, 2020 (Final Rule), by the U.S. Department of Commerce, Bureau of Industry and Security (BIS) that, among other changes, revises the Export Administration Regulations (EAR) § 744.21 provision related to Military End Uses and Military End Users in the People’s Republic of China (China), Russia, or Venezuela, and significantly expands the license requirements on exports, reexports, and transfers (in-country) of such items. See our previous article for more details about the EAR revisions stipulated in the Final Rule. Importantly, the Final Rule adds the Electronic Export Information (EEI) filing requirement in the Automated Export System (AES) for exports to China, Russia, or Venezuela. Specific provisions of the Final Rule became effective on June 29 and most recently, other aspects took effect on September 27.

On August 9, 2023, President Biden issued an Executive Order (“E.O.”) on outbound investment regulation. This long-anticipated action marks the first time the U.S. government has sought to regulate investments made abroad by U.S. firms.

In recent years, Singapore has become a significant hub for international commerce. According to the U.S. International Trade Administration, the U.S. was Singapore’s fourth largest source of imports in 2021 and the primary choice for technology firm regional headquarters.  In addition, Singapore’s economy relies heavily on “transshipment and its status as a business hub.”  As such, Singapore serves as a focal point for international trade, and as two recent U.S. government actions suggest, a possible new focus for trade-related enforcement.

The U.S. Department of Commerce Bureau of Industry and Security (“BIS”) is cracking down on foreign governments that prevent the end-use checks the BIS uses to ensure compliance with Export Administration Regulations (“EAR”). 

The Office of the United States Trade Representative (“USTR”) is conducting a review of the China Section 301 tariffs that were put into place in 2018 under the Trump administration. 

On October 7, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced a major new rule that restricts the ability of the People’s Republic of China (“PRC” or “China”) to obtain advanced computing chips
 

Amid political and trade tensions between the United States and the People’s Republic of China (“China”), President Trump issued Executive Order (“EO”) 13959 on November 12, 2020, to address the national emergency posed by the exploitation of United States capital to resource and enable the development and modernization of China’s military, intelligence, and other security organizations.

On May 23, 2022, President Joe Biden, when asked whether the United States would get involved militarily if China invaded Taiwan, answered firmly, “Yes. That’s the commitment we made.”¹ As the world watches the war in Ukraine,

If your company has been negatively impacted by the Section 232 and Section 301 duties, you may now have another opportunity to voice your concerns in Washington. On May 5, 2022, the U.S. International Trade Commission (ITC) published information regarding a fact-finding investigation into the economic impact of the Section 232 and 301 duties on U.S. industries.

On May 3, 2022, the U.S. Trade Representative (“USTR”) announced a statutory two-phase review of the Section 301 tariffs on Chinese-origin goods. USTR also published a Federal Register Notice draft describing the process for filing requests for extension of the tariffs.

On February 4, 2022, the House of Representatives passed the National Critical Capabilities Defense Act of 2021 (“NCCDA”) as part of the much larger America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (“COMPETES Act”). The COMPETES Act has many aims related to shoring up domestic manufacturing, protecting technology capabilities, and generally, as the name suggests, improving the country’s competitiveness with the rest of the world, primarily China.

The largest criminal monitorship in U.S. history has ended. On March 22, 2022 a U.S. judge ruled that Chinese telecommunications giant ZTE Corporation had completed the terms of its five-year probation, which began in 2017 following ZTE’s criminal plea agreement for its role in exporting controlled U.S. products to embargoed countries.

The Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”), under the U.S. Department of the Treasury (“Treasury”), has the authority to review for national security risks certain foreign investment transactions in U.S. businesses.

On June 9, 2021, President Biden signed an Executive Order (“June 9 E.O.”)1 elaborating on measures to protect the information and communications technology and services (“ICTS”) supply chain with specific emphasis on connected software applications.2 The June 9 E.O. directs federal agencies to (1) assess the threats posed by connected software applications controlled by foreign adversaries, (2) provide recommendations on how to protect sensitive personal data of U.S. persons, and (3) evaluate transactions involving connected software applications that pose risks to U.S. national security. The June 9 E.O. also revokes three Executive Orders issued last fall by former President Trump that targeted several Chinese communications and financial technology software applications, including TikTok and WeChat.

The digital payments arm of Chinese ecommerce giant Alibaba plans to sell off a Kansas City-based biometric security firm it acquired with the blessing of CFIUS in 2016. Here are all the basics you need to know, with expert insights.

Towards the end of its term, the Trump Administration continues to strengthen regulation of trade with China, even when it means leaving implementation of the new controls to the Biden Administration.

For companies doing business in and with China, the increased export controls and economic sanctions – a recent executive order prohibiting transactions with popular Chinese mobile payment apps, a new ‘Military End Use’ list that tightens export licensing for designated items, and a ban on securities investments in Chinese military entities – call for enhanced due diligence to ensure compliance.

On January 9, 2021, the Ministry of Commerce of China issued new Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Laws and Other Measures (“the Counteracting Rules”). The Counteracting Rules are proposed to counteract the negative impact on Chinese entities (citizens, legal persons or other organizations) caused by unjustified extra-territorial application of foreign laws and other measures, and to safeguard China’s national sovereignty, security and development interests.

Now more than ever Chinese investment in the United States is facing barriers stemming from the strict reviews conducted by the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”). After several high-profile cases, which our law firm has covered in previous articles and are summarized below, the general consensus is that Chinese investment will be greatly scrutinized – and in many cases completely blocked – to satisfy the U.S. government’s national security concerns.

But even in these uncertain times, we have also seen some Chinese transactions approved by CFIUS, confirming that not all Chinese investment is off limits.

If you have not noticed, 2020 is a U.S. presidential election year. If you missed that fact, you may also not realize that the United States is in the midst of a years-long trade war with China. The convergence of these two circumstances has caught the attention of the business community, particularly as relates to trade policy.

Most people are familiar with the social media sensation, TikTok, a mobile device application which allows users to create and share short-form videos. It is reported that there have been over 175 million downloads of the application in the U.S. Despite its popularity, most TikTok users are oblivious to how the national security concerns raised by the current White House Administration will affect them. Not to mention many users are probably unaware and will be surprised to learn that TikTok is a Chinese application. Beijing-based, ByteDance Ltd. (ByteDance) is the parent company of TikTok.

On June 29, 2020, revisions to the Export Administration Regulations (“EAR”) that will impact many exporters and reexporters – particularly those doing business with the People’s Republic of China – became effective. 

The U.S. Department of the Treasury finalized the new Committee on Foreign Investment in the United States (“CFIUS”) regulations, which became effective on February 13, 2020.[1]

Amongst other matters, the new regulations significantly expand CFIUS’s jurisdiction for non-controlling investments, including the review of transactions involving U.S. businesses that manage or collect “sensitive personal data” of U.S. citizens.

On December 18, 2019, the United States Trade Representative (“USTR”) officially signaled the first real respite in the ongoing trade war with China by publishing a Notice of Modification of Action  to suspend a planned 15% duty on certain products from China that was originally scheduled to take effect on December 15, 2019. This early Christmas present came after nearly two years of the USTR extending and increasing tariffs on Chinese goods pursuant to Section 301 of the Trade Act of 1974 (“Section 301”).

Should human rights concerns be a consideration for exporters engaged in international trade? New draft guidance proposed by the U.S. Department of State aims to provide a potential roadmap for tackling this issue.

The trade dispute between the U.S. and China that started mid-2016 has no end in sight. As part of his presidential campaign, then-candidate Donald Trump threatened to apply tariffs on various imports from China. Now that he is President, these tariffs have come to fruition: after several failed rounds of trade negotiations with China, the “Section 301” probe into alleged Chinese intellectual property theft started in earnest early 2018. 

The current U.S.-China trade war does not appear to end with tariffs, however. Biomedical research appears to be the latest unlikely victim.

The USTR is still accepting exclusion requests for products subject to the trade action on $200 Billion of Chinese goods, also known as “List 3” products

In spite of a short-term reprieve from additional tariffs on select products, trade uncertainty under the Trump administration continues for U.S. companies that do business with China.

On August 7, 2018, the United States Trade Representative (“USTR”) announced it had finalized a list of $16 billion worth of imports from China that will be subject to a 25% tariff rate. 

On August 1, 2018, the United States Trade Representative (“USTR”) announced it was considering raising the proposed tariffs on $200 billion worth of goods imported from China from 10% to 25%. This is the latest in a long string of developments aimed at urging China to stop its unfair practices, open its market, and engage in true market competition. 

On July 6, 2018, the United States Trade Representative ("USTR") announced the procedures for filing and obtaining product exclusions from the recently announced Section 301 tariffs on the imports of $34 billion worth of Chinese goods. Exclusion requests are due by October 9, 2018.

This article serves as an update on the most recent tariff related developments.

With the signing of two new executive orders, President Trump is taking the first steps in fulfilling two of his favorite campaign promises, both relating to trade: (1) no longer tolerating trade abuse that damages the American economy and (2) decreasing the national trade deficit. 

On March 7, 2017, the U.S. Department of Justice (“DOJ”), the Treasury Department's Office of Foreign Assets Control (“OFAC”), and the Commerce Department's Bureau of Industry and Security (“BIS”) together levied the largest ever export and sanctions related penalty against Chinese telecommunications firm ZTE Corporation (“ZTE”). ZTE agreed to the combined $1.19 billion fine to settle a number of alleged violations of U.S. sanctions targeting Iran. 

The first weeks of the Trump Administration have been eventful, but there has been little action in the area of export controls and economic sanctions. In this regard, there's no clear consensus just yet as to whether and how significantly President Trump plans to deviate from the course set over the last eight years of the Obama Administration.