Earlier, we discussed President Trump’s proclamations on aluminum and steel imports, which raised the tariff rate to 25 percent on imports of aluminum and steel (and certain derivatives thereof) under Section 232 of the Trade Expansion Act of 1962 (as amended, 19 U.S.C. 1862). Last week’s proclamations also removed all country-specific exemptions, special programs (such as quotas) and product-specific exclusions.

Read also: Week Three in Trade – First 100 Days of the New Administration

Memorandum Directing Agencies to Study Reciprocal Trade and Tariffs

We also discussed President Trump’s memorandum directing the Secretary of Commerce and the United States Trade Representative (USTR), in consultation with other Executive Branch agencies, to investigate the harm caused to the U.S. by “non-reciprocal” tariffs and other trade practices found to disadvantage American businesses. While the President had previously suggested that the reciprocal tariff plan would take effect “almost immediately,” the memorandum indicates that further deliberation and fact-finding will be carried out by the relevant agencies before any comprehensive reciprocal tariff system is implemented.

Removal and Reinstatement of De Minimis Exemption for Low-Value Imports

Following President Trump’s removal of the de minimis exemption on imports from China valued under $800, on Friday, February 7, 2025, he issued an amendment to his original Executive Order, temporarily reinstating the exemption.  The de minimis exemption will continue to apply until the Secretary of Commerce has established adequate systems to “fully and expediently process and collect tariff revenue” for small value shipments currently subject to the de minimis exemption.

The February 5, 2025, Executive Order does not establish retroactive eligibility for de minimis treatment. Accordingly, U.S. Customs and Border Protection (“CBP”) will not refund duties for any shipments denied de minimis prior to the resumption of processing of de minimis clearances for imports from China on February 7, 2025.

Export News

BIS Freezes All New Export License Applications

The Bureau of Industry and Security (“BIS”) has quietly paused all reviews of new export license applications submitted this month, citing a “policy review.” The agency has not provided additional details on when the application process will resume or what specific aspects of policy are being examined. This pause is expected to exacerbate the already lengthy processing times at BIS, which is facing a staffing shortage in its licensing office.

This is not the first time BIS has placed a hold on new licenses. In the past, the agency has paused licenses for exports to specific end-users, such as China’s Semiconductor Manufacturing International Corp. and Huawei, in order to address sensitive policy issues. In 2023, BIS also implemented an indefinite hold on new export licenses for firearms, components, and ammunition to Peru, Ecuador, and Guatemala.

Congressional Nominations

Howard Lutnick, Donald Trump’s nominee to lead the Department of Commerce and oversee the President’s ambitious trade and tariff agenda is now poised for a full Senate confirmation vote in the coming days. On February 13, 2025, the Senate voted 52-45 to advance Howard Lutnick’s nomination. This follows last week’s 16-12 vote by the Senate Commerce, Science, and Transportation Committee to send Lutnick’s nomination to the floor, with only Sen. John Fetterman (D-Pa.) joining all Republicans in support.