July 16, 2025—Top Stories:
Forthcoming BIS "50% Rule" to Impact US Exporters
AAEI and the the trade community are monitoring a significant development from the Bureau of Industry and Security (BIS) that could profoundly impact U.S. exporters and their compliance obligations. Tim Mooney, Acting Director of Regulatory Policy at BIS, recently confirmed that BIS is drafting a “50% Rule” for the Entity List. This proposed rule signifies a fundamental shift in export control enforcement, moving towards an ownership-based approach like that employed by the Office of Foreign Assets Control (OFAC).
To learn more about the proposed “50% Rule” and how it could impact your compliance obligations, read the full article here.
EU, MX Imposed 30% Tariffs
President Trump imposed 30% tariffs on its two largest trade partners, Europe and Mexico. In letters posted to Truth Social, the president said each country would face the new tariffs starting Aug. 1, though he left the door open to further talks to bring down that rate.
The European Union won’t immediately retaliate against President Donald Trump’s tariffs; a move that’s prompted warnings it could strengthen Washington’s position ahead of a looming deadline. The EU prepared countermeasures over a portion of Trump’s metal tariffs targeting around $24.5 billion worth of U.S. goods, which were scheduled to go into effect this week. At a Sunday conference, European Commission President Ursula von der Leyen said the bloc would delay its retaliatory tariffs until early August, referencing the letter Trump sent the bloc on Saturday threatening the hike.
EU Plans to Coordinate Tariff Response with G7
The EU is seeking to formally engage G7 countries such as Canada and Japan to coordinate responses to U.S. President Donald Trump’s erratic tariffs. According to Politico, the EU floated the G7 idea at an emergency meeting of EU ambassadors on Sunday. Brussels is now trying to strike the right balance between keeping negotiating lines open and ensuring retaliation is still seen as a credible threat.
Trump: 50-Day Ultimatum Before 100% Tariffs on Countries that Buy Russian
President Trump announced this week that unless Russian President Putin participates in a Ukraine cease fire in the next 50 days, the U.S. will impose tariffs of 100% on countries doing business with Russia. Third countries that buy goods from Russia, including oil and natural gas, could see tariffs of 100% on top of the country’s existing U.S. tariffs.
Several members of Congress have introduced legislation calling for secondary tariffs on third countries doing business with Russia, including Sen. Lindsey Graham’s bill that imposes 500% tariffs on third countries that buy Russian energy. His bill has 85 co-sponsors. However, Senate Majority Leader Thune has stated that he will press the brakes on any Russian sanction legislation after President Trump placed the 50-day ultimatum.
FDA Changes How Section 321 (De Minimis) Shipments of Products Are Regulated
The FDA has changed how section 321 (De Minimis) shipments will be regulated by the agency. According to FDA, this change is solely intended to ensure all FDA-regulated products are handled in the same manner and allows FDA the opportunity to assess regulatory compliance regardless of quantity and value.
CSMS #6558118 is intended to notify the trade community that the previously issued messages related to Section 321 (de minimis) shipments (CSMS #94-001260, CSMS # 17-000388, CSMS # 52257745, and CSMS # 53697179) are being rescinded.
This means that regardless of quantity and value, entries containing the 5 categories identified in CSMS# 17-000388 will need to be provided to FDA. This allows FDA to review entries containing FDA-regulated products offered for import, regardless of shipment quantity and value, to facilitate legitimate trade and prevent the importation of violative products.
This change does not affect CBP requirements on tariffs and does not eliminate duty-free treatment under de minimis provisions. Based on feedback received from the import industry, FDA understands that it will take some time for trade to ensure alignment with the message. The FDA plans to work with AAEI and the trade to answer questions and ensure clarity.
Commerce Imposes 17 percent tariff on Mexican Tomatoes
The Trump administration imposed a 17 percent tariff on more than $1 billion dollars’ worth of tomatoes from Mexico after unilaterally ending a bilateral agreement that had managed tomato trade between the two countries since 2019. Mexico currently supplies 70% of the U.S.’s tomato market, up from 30% two decades ago. The National Restaurant Association and the U.S. Chamber of Commerce called for the Trump Administration to reach an agreement with Mexico.
Justice Increases False Claims Investigations
The Justice Department (DOJ) is leveraging a unit specializing in investigating financial fraud schemes to prosecute companies evading U.S. tariffs. The Trump Administration is concerned that as tariffs go up, so do the risks of companies seeking to avoid paying the tariffs. Common tariff evasion schemes that the DOJ will look at is misclassifying products under an incorrect HTS code or product description; undervaluing goods; misrepresenting the country of origin or concealing transshipment activity; and misapplication of qualification rules under free trade agreements such as KORUS, USMCA.
