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The Month in International Trade – July 2025

Client Alert | 12 min read | 08.05.25

Top Trade Developments

Crowell Speaks

This news bulletin is provided by the International Trade Group of Crowell & Moring. If you have questions or need assistance on trade law matters, please contact Anand Sithian or Simeon Yerokun or any member of the International Trade Group.

Top Trade Developments

U.S. Imposes 50% Tariff on Brazilian Goods

On July 30th, President Trump formally announced the Executive Order increasing the overall reciprocal tariff rate on the Republic of Brazil from 10% to 50% as previously signaled in a Truth Social post on July 9th, 2025. The reciprocal tariffs for Brazil are distinctive for the fact that they comprise two stacking tariffs; a 10% reciprocal tariff and a 40% reciprocal tariff. The start date for the 40% tariff increase is set as August 6th, 2025, 7 days after the publication date of the executive order, however there is an exemption for goods that were loaded onto a vessel and in transit prior to August 6th, 2025 and clear Customs before October 5th, 2025.

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For more information, contact: John Brew, Brett Everett

Export Controls and America’s AI Action Plan

On Wednesday, July 23, 2025, the White House released the “America’s AI Action Plan” (the “AI Action Plan”). The AI Action Plan is the result of the Trump Administration’s Request for Information, which describes policy actions related to artificial intelligence as it seeks to replace the Biden Administration’s “AI Diffusion Rule.” The AI Action Plan offers a broader strategy to utilize export controls to address the evolving AI landscape, promote the U.S. as the dominant player on the world stage, and constrain foreign adversaries of the United States, namely China.

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For more information, contact: Scott Wise, Jeremy Iloulian, Tim Laderach

White House AI Action Plan Seeks to Establish “Dominance,” Boost Innovation, and Scrutinize Regulations

On July 23, 2025, the White House released Winning the Race: America’s AI Action Plan (“the Plan”) the Trump Administration’s most significant policy statement on artificial intelligence to date.

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For more information, contact: Matthew Ferraro, Michael G. Gruden, Kirsten Nathanson, Scott Wise, Tyler O’Connor, Linda Malek, Anna Z. Saber, Jeremy Iloulian, Jacob Canter, Neda Sheehan, Tim Laderach, Alexis Ward, Caitlyn Weeks

EU Adopts the Largest Ever Trade Countermeasures Against the U.S. to Apply if EU-U.S. Negotiations Fail

On July 24, 2025, the European Commission announced the imposition of new EU countermeasures in response to U.S. tariffs further to an agreement reached among EU Member States. These measures take the form of additional customs duties on U.S. products as well as export restrictions for certain EU products. In total, these measures concern about EUR 93 billion ($109 billion) worth of customs duties, the highest volume of bilateral trade caught by the EU so far. The EU countermeasures are set to enter into force as of August 7.

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For more information, contact: Vassilis Akritidis, David Stepp, Jean-Baptiste Blancardi, Pier Natta

D.C. Circuit Dismisses Suit Concerning Cocoa Farm Forced Labor in Côte d’Ivoire for Lack of Standing

On July 22, 2025, the U.S. Court of Appeals for the D.C. Circuit dismissed an action brought by eight Malian citizens against seven U.S. cocoa importers (Cargill, Nestlé, Mondelēz, Hershey, Olam, Barry Callebaut, and Mars) for forming and operating a cocoa supply chain to provide themselves with cheap cocoa harvested by child labor. The action was filed under the Trafficking Victims Protection Reauthorization Act (TVPRA). 18 U.S.C. §§ 1589, 1595, 1596.

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For more information, contact: John Brew, Sibilla Grenon

CBP Rescinds PGA Filing Exemption for Certain Low-Value FD-Regulated Products

In a CSMS message posted July 9, 2025, U.S. Customs and Border Protection (CBP) announced that, effective immediately, all shipments of products regulated by the U.S. Food and Drug Administration (FDA) must be subject to FDA-review upon importation.

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For more information, contact: Maria Vanikiotis, Jason Johnson, Ivy Xun

Conducting Investigations and Discovery in China, Part Two

In a recently published Corporate Counsel article, “Conducting Investigations and Discovery in China, Part II: Navigating Judicial and Regulator Expectations in Cross-Border Reviews,” Crowell’s John E. Davis and the Zhong Lun Law Firm’s Gary Gao (Jun Gao) further delve into legal and practical challenges in conducting discovery and investigations in China, including strategies for effectively reviewing information under restricted conditions for cross-border transfer and use in the U.S., as well as key considerations in managing Court and regulator expectations to ensure a smooth and compliant process.

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For more information, contact: John Davis

To read the first article in this series, click here.

(Not the Funniest) Weekend Update: Recap of Recent Developments in the EU-US Tariff Dispute

Last weekend, both the Trump administration and the European Commission made announcements concerning the ongoing EU-US tariff dispute. This alert keeps you up to date with the latest developments.

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For more information, contact: Vassilis Akritidis, Dan Cannistra, Jean-Baptiste Blancardi

US Tariff Enforcement Risk Continues to Rise as DOJ Assigns Unit to Criminally Prosecute Violators

The Trump administration continues to raise the stakes for importers and other actors in the international trade space. Bloomberg Law reports that the Department of Justice has tasked its MIMF (Market Integrity and Major Frauds) Unit with investigating fraud schemes by companies dodging U.S. tariffs. The MIMF Unit is already well-versed in financial fraud investigations, is set to grow significantly with the addition of prosecutors previously assigned to consumer protection matters and now is shifting resources to tariff evasion cases.

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For more information, contact: Maria Vanikiotis, Derek Hahn, Preston Pugh, Sharmistha Das, Alexander Kramer

The U.S.-UK Trade Deal – So Far

On this 4th of July, Britain was also celebrating. The first country to secure a trade deal with the Trump Administration, the U.K. can indeed celebrate the so-called Special Relationship.

But what exactly is in the deal?

For starters it’s not a free trade agreement in the traditional sense. Rather, it’s more like a starter pack, with both sides making certain commitments, while leaving most of the details to be worked out later. But understanding what’s been agreed so far, and what’s still yet to come will help transatlantic companies position themselves in this new normal.

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For more information, contact: Alex Schaefer, Nicola Phillips, Lauren Blanchard, Sophie Davis

De Minimis to be Eliminated July 2027 under Recently Enacted Megabill

As part of the tax and spending provisions included in the “Megabill” signed by Trump into law on July 4, 2025, are provisions that eliminate the de minimis exemption under Section 321 of the Tariff Act of 1930. The de minimis exemption currently allows shipments not exceeding $800 to enter the U.S. duty-free, excluding shipments coming from China and Hong Kong. The tax and spending law officially eliminates the de minimis entry privilege for commercial shipments from all countries, with an effective date of July 1, 2027. In addition to its repeal of de minimis, the law imposes a new civil penalty for misuse of the de minimis entry process. Violators of Section 321 of the Tariff Act of 1930 will be fined a civil penalty up to $5,000 for the first violation and up to $10,000 for each subsequent violation. The effective date for the new penalty provision is August 3, 2025 (30 days after the law’s enactment).

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For more information, contact: John Brew, Andrew Schlegel, Ivy Xun

Crowell Speaks

“The Cross-Industry Aftermath of the de minimis Changes: How Companies Are Transitioning E-Commerce Fulfillment to Maintain Efficiency and Cost Control,” ACI’s 14th Advanced Forum on U.S. Customs Compliance and Enforcement, Arlington, VA (October 8, 2025). Speaker: John Brew

Trump trade wins leave voters, businesses wanting more
July 31, 2025 - The Hill
Related Professional: Monica Gorman

Trump Trade Details Are Murky. China’s Rate Is Key
July 29, 2025 - Barron’s
Related Professional: Monica Gorman

What the U.S.-Japan Trade Pact Means for Everyone Else
July 23, 2025 - Barron’s
Related Professional: Monica Gorman

Trump Asks Supreme Court To Decline Early Tariff Challenge
July 18, 2025 – Law360
Related Professional: Daniel W. Wolff

BIS 50% Rule: What Would it Mean for Businesses
July 17, 2025 – Dow Jones
Related Professional: Jeremy Iloulian

Tariffs Alone Won’t Fix Weakened Drug Supply Chains
July 16, 2025 - Pharmaceutical Executive
Related Professional: Monica Gorman

Live interview on latest trade developments with anchor Akshay Tandon
July 12, 2025 - CTV News (Canada)
Related Professional: Monica Gorman

How Tariffs Will Be A Weapon For Countries To Put The Squeeze Back On Trump And His Red-State Allies
July 10, 2025 – Dow Jones
Related Professional: Geralyn Ritter

As Tariff Hits Keep Coming, Experts Say Fashion’s Burden Could Be Compounded
July 9, 2025 - Sourcing Journal
Related Professional: Monica Gorman

Tariff News Is Pouring In. The Market May Be Too Complacent
July 7, 2025 - Barron’s
Related Professional: Monica Gorman

“Workplace strategies amid an escalating trade war,” IEL’s Asia-Pacific Employment Summit-Singapore, Singapore (July 2, 2025). Speaker: Nicole Simonian

Contacts

Insights

Client Alert | 2 min read | 08.27.25

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