On April 15, 2025, President Donald Trump issued an Executive Order (EO) directing the Department of Commerce (Commerce) to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to determine the effects on national security of imports of processed critical minerals and their derivative products. Because “processed critical minerals and their derivative products face significant global supply chain vulnerabilities and market distortions due to reliance on a small number of foreign suppliers”, President Trump stated, “the dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience.” 

The EO defines the term “critical minerals” as those minerals included in the “Critical Minerals List” published by the United States Geological Survey (USGS), which also includes uranium. The term “rare earth elements” means the 17 elements identified as rare earth elements by the Department of Energy (DOE) in the April 2020 publication, “Critical Materials Rare Earths Supply Chain.” The EO also defines the scope of the terms “processed critical minerals” and “derivative products.”

According to the EO, Commerce must assess: (i) U.S. imports of all processed critical minerals and derivative products incorporating such processed critical minerals; (ii) the foreign sources by percent and volume of all processed critical mineral imports and derivative product imports, the specific types of risks that may be associated with each source by country, and those source countries deemed to be of significant risk; (iii) the distortive effects of the predatory economic, pricing, and market manipulation strategies and practices used by countries that process critical minerals exported to the United States, including the distortive effects on domestic investment and the viability of U.S. production, as well as how such strategies and practices permit such countries to maintain their control over the critical minerals processing sector and distort U.S. market prices for derivative products; (iv) the demand for processed critical minerals by manufacturers of derivative products in the United States and globally, including the extent to which such manufacturers’ demand for processed critical minerals originates from certain countries; (v) global supply chains for processed critical minerals and their derivative products; (vi) the current and potential capabilities of the United States to process critical minerals and their derivative products; and (vii) the dollar value of the current level of imports of all processed critical minerals and derivative products by total value and country of export.

Within 90 days, Commerce must submit a draft interim report, with a final report and recommendations to be submitted to President Trump within 180 days. The Secretary of Commerce must consider the following recommendations: (i) the imposition of tariffs; (ii) safeguard measures to avoid circumvention; (iii) policies to incentivize domestic production; and (iv) any additional measures that may be warranted to mitigate U.S. national security risks. Should President Trump decide to impose tariffs, a White House Fact Sheet notes, “any resulting tariff rate imposed under Section 232 would take the place of the current reciprocal tariff rate,” implemented under President Trump’s April 2, 2025 EO.

On April 1, 2025, it was announced that the Department of Commerce had initiated an investigation under Section 232 of the Trade Expansion Act of 1962 to determine the effects on the national security of imports of semiconductors and semiconductor manufacturing equipment (SME), and their derivative products. This includes, among other things, semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components. Derivative products include downstream products that contain semiconductors, such as those that make up the electronics supply chain. Commerce’s Bureau of Industry and Security (BIS) recently issued a Federal Register notice announcing that interested parties may submit written comments, data or other information pertinent to these investigations. Comments are due no later than May 7, 2025.

BIS is particularly interested in comments addressing: (i) the current and projected demand for semiconductors (including as embedded in downstream products) and SME in the United States; (ii) the extent to which domestic production of semiconductors can or is expected to be able to meet domestic demand at each node size for each product type, and similarly the extent to which domestic production of SME can or is expected to be able to meet domestic demand; (iii) the role of foreign fabrication and assembly, test and packaging facilities in meeting U.S. semiconductor demand, and similarly the role of foreign supply of SME in meeting domestic demand; (iv) the concentration of U.S. semiconductor imports (including as embedded in downstream products) from a small number of fabrication facilities and the associated risks, and similarly the concentration of U.S. SME imports from a small number of foreign sources; (v) the impact of foreign government subsidies and predatory trade practices on U.S. semiconductor and SME industry competitiveness; (vi) the economic or financial impact of artificially suppressed semiconductor and SME prices due to foreign unfair trade practices and state-sponsored overcapacity; (vii) the potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over semiconductors and SME supply chains; (viii) the feasibility of increasing domestic semiconductor capacity (in different product types and node sizes) to reduce import reliance, and similarly the feasibility of increasing domestic SME capacity to reduce import reliance; (ix) the impact of current trade and other policies on domestic semiconductor and SME production and capacity, and whether additional measures, including tariffs or quotas, are necessary to protect national security; (x) what product types and node sizes could be built only using SME from U.S. companies; (xi) what SME is manufactured abroad and faces limited competition from U.S.-made products; (xii) what SME parts or components are only available outside the United States; (xiii) where the U.S. workforce faces a talent gap in production of semiconductors, SME or SME components; and (xiv) any other relevant factors.

Comments must be submitted at: www.regulations.gov. The Docket ID no. for this notice is BIS-2025-0021, and submitters must refer to XRIN 0694– XC121 in all comments.

On April 1, 2025, it was announced that the Department of Commerce had initiated an investigation under Section 232 of the Trade Expansion Act of 1962 to determine the effects on the national security of pharmaceuticals and pharmaceutical ingredients and their derivative products. This includes both finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients and key starting materials, and derivative products of those items. Commerce’s Bureau of Industry and Security (BIS) has recently issued a Federal Register notice announcing that interested parties may submit written comments, data or other information pertinent to these investigations. Comments are due no later than May 7, 2025.

BIS is particularly interested in comments addressing: (i) the current and projected demand for pharmaceuticals and pharmaceutical ingredients in the United States; (ii) the extent to which domestic production of pharmaceuticals and pharmaceutical ingredients can meet domestic demand; (iii) the role of foreign supply chains, particularly of major exporters, in meeting U.S. demand for pharmaceuticals and pharmaceutical ingredients; (iv) the concentration of U.S. imports of pharmaceuticals and pharmaceutical ingredients from a small number of suppliers and the associated risks; (v) the impact of foreign government subsidies and predatory trade practices on the competitiveness of the U.S. pharmaceuticals industry; (vi) the economic impact of artificially suppressed prices of pharmaceuticals and pharmaceutical ingredients due to foreign unfair trade practices and state-sponsored overproduction; (vii) the potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over pharmaceuticals supplies; (viii) the feasibility of increasing domestic capacity for pharmaceuticals and pharmaceutical ingredients to reduce import reliance; (ix) the impact of current trade policies on domestic production of pharmaceuticals and pharmaceutical ingredients, and whether additional measures, including tariffs or quotas, are necessary to protect national security; and (x) any other relevant factors.

Comments must be submitted at: www.regulations.gov. The Docket ID no. for this notice is BIS-2025-0022, and submitters must refer to XRIN 0694– XC120 in all comments.

On April 11, 2025, President Donald Trump issued a Presidential Memorandum providing clarification of allowable exceptions under Executive Order 14257 of April 2, 2025 (i.e., implementation of reciprocal tariffs). The memorandum clarifies that one excepted product is the importation into the United States of “semiconductors.” The memo proceeds to define this term as including products classified in various headings and subheadings of Chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (HTSUS). It should be noted that the HTSUS codes included allow for a broad definition of the term “semiconductors.” While various semiconductor devices and electronic integrated circuits are included in the exclusion under HTSUS subheadings 8541 and 8542, the term also covers HTSUS subheadings that include, among other items, smartphones, solid-state non-volatile storage devices, flat panel display modules, and other monitors.

U.S. Customs and Border Protection (CBP) subsequently issued a message via Cargo Systems Messaging Service (see CSMS # 64724565) confirming this exclusion and noted that for products classified under the 20 specific HTSUS headings, importers should report the secondary classification under heading 9903.01.32 to declare the exception from the reciprocal tariff provided in heading 9903.01.25, headings 9903.01.43 – 9903.01.62 or 9903.01.64 – 9903.01.76 on April 9, 2025, or heading 9903.01.63 since April 9, 2025. It also notes that for such products entered on or after April 5, 2025, importers should take action to correct any filing entries, and that refunds may be requested by filing necessary refund requests or protests.

For additional background on the reciprocal tariffs, see Thompson Hine Updates of April 3, 2025 and April 10, 2025.

On April 9, 2025, President Donald Trump issued an Executive Order (EO) announcing that he was pausing the country-specific reciprocal tariffs and, instead, leaving in place for 90 days the baseline 10% tariffs on all countries that was implemented on April 5, 2025. The President, however, noted that this pause would not apply to imports of goods from China and, effective on April 10, 2025, such goods would be subject to an additional ad valorem duty rate of 125%. The suspension of the higher country-specific duty rates will remain in effect until July 9, 2025.

U.S. Customs and Border Protection (CBP) later confirmed these actions in a Cargo Systems Messaging Service (CSMS) announcement. CSMS # 64701128 states that:

  • The country-specific rates that became effective on April 9, 2025 are suspended.
  • Imported products of any country, except for China, including products of Hong Kong and Macau, other than those that fall within the identified exceptions included in CSMS # 64680374, entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on April 10, 2025, are subject to the following Harmonized Tariff Schedule of the United States (HTSUS) classification and additional ad valorem duty rate:
    • 9903.01.25: Articles the product of any country, except for products described in headings 9903.01.26-9903.01.33, and except as provided for in heading 9903.01.34, and except for articles the product of China, including products of Hong Kong and Macau, will be assessed an additional ad valorem duty rate of 10%.
  • Imported products of China, including products of Hong Kong and Macau, other than those that fall within the identified exceptions included in CSMS # 64680374, entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on April 10, 2025, are subject to the following HTSUS classification and additional ad valorem duty rate:
    • 9903.01.63: Articles the product of China, including products of Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125%.

The President also again revised upward the additional duty rates that will apply to de minimis shipments of products from China. Accordingly, the April 9, 2025 EO dictates that all postal items sent to the United States from China and Hong Kong through the international post that qualify for the de minimis exemption will be now be subject to submitting duties to CBP in one of two manners:

  • An ad valorem duty of 120% of the value of the postal item; or,
  • A specific duty “per postal item containing goods” of $100 between May 2 through May 31, 2025, and $200 beginning June 1, 2025.

For additional background and detail on these tariffs, see Thompson Hine Updates of April 3, 2025, April 8, 2025 and April 9, 2025.

On April 8, 2025, President Donald Trump issued a new Executive Order (EO) to address China’s retaliatory 34 percent tariff it is scheduled to impose on all goods imported into China originating from the United States beginning on April 10, 2025. The President has stated that effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 9, 2025, the reciprocal tariff on imports from China shall increase from 34% to 84%. U.S. Customs and Border Protection (CBP) confirmed this tariff rate increase in a Cargo Systems Messaging Service later in the evening. See CSMS # 64687696.

As a result of this reciprocal tariff rate increase, and the previous tariff rate of 20% on all goods coming from China due to President Trump’s February EO to address the synthetic opioid supply chain in China (see Thompson Hine Update of March 3, 2025), the effective overall duty rate on imports from China will now be 104%.

Further, and to ensure that these duties are not circumvented, the EO also modifies an earlier order addressing the application of tariffs on goods entering the United States from China under the “de minimis” rule pursuant to Section 321 of the Tariff Act of 1930; an exemption allowing imports valued at $800 or less to enter the United States with minimal filing requirements and duty-free. Accordingly, the new April 8 EO dictates that all postal items sent to the United States from China and Hong Kong through the international post that qualify for the de minimis exemption will be now be subject to submitting duties to CBP in one of two manners:

  • An ad valorem duty of 90% of the value of the postal item; or,
  • A specific duty “per postal item containing goods” of $75 between May 2 through May 31, 2025, and $150 beginning June 1, 2025.

For additional background on the previous EOs, see Thompson Hine Updates of April 3, 2025 (de minimis)and April 3, 2025 (reciprocal tariffs).

On April 8, 2025, U.S. Customs and Border Protection (CBP) issued further clarification on the “savings clause” issued under President Donald Trump’s Executive Order (EO) implementing reciprocal tariffs on over 60 countries (see Thompson Hine Update of April 3, 2025). The reciprocal tariff EO states that goods loaded onto a vessel at the port of loading and in transit on the final mode of transport before April 5, 2025 (10% baseline reciprocal tariff) and before April 9, 2025 (country-specific reciprocal tariffs), will not be subject to such additional duties. However, as is typical in such clauses, this EO did not indicate a date on which goods “on the water” at the time of a regulatory action had to be entered into the United States. Instead, the reciprocal tariff EO had no end date as to when such goods must be entered for consumption or withdrawn from a warehouse for consumption in order to not be subject to these additional tariffs.

As such, CBP has issued via its Cargo Systems Messaging Service (CSMS) the following clarifications (see CSMS # 64680374):

  • Articles the product of any country that were (1) loaded onto a vessel at the port of loading and in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. EDT on April 5, 2025 (i.e., the 10% tariff), AND (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on April 5, 2025, and before 12:01 a.m. EDT on May 27, 2025, are not subject to the additional 10% duty rate.
  • Articles the product of the countries that have an additional country-specific rate of duty that were (1) loaded onto a vessel at the port of loading and in transit on the final mode of transport on or after 12:01 a.m. EDT April 5, 2025, and before 12:01 a.m. EDT April 9, 2025, and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on May 27 2025, are subject to the 10% additional rate in lieu of the country-specific rate of duty.
  • To prevent importers from abusing the exceptions for goods that were in transit before April 5, 2025 or April 9, 2025, as applicable, CBP will permit HTSUS heading 9903.01.28, or HTSUS heading 9903.01.25 for products of countries covered by headings 9903.01.43 – 9903.01.76 (i.e., the country-specific reciprocal tariffs), as applicable, to be declared only for goods that are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on May 27, 2025, after which time the exceptions would no longer realistically apply due to the passage of time.

This CSMS provides other guidance on the additional duties due on imported merchandise and the proper reporting of at least one HTSUS Chapter 99 secondary classification related to the reciprocal tariffs.  All imported merchandise must be reported with either the HTSUS classification under which the reciprocal tariff applies or one of the HTSUS classifications pursuant to which the merchandise is excepted from the reciprocal tariff.

On April 7, 2025, President Donald Trump issued a Presidential Memorandum directing the Secretary of the Treasury and others in his administration to conduct a new review of the acquisition of U.S. Steel Corporation by Nippon Steel Corporation “to assist me in determining whether further action in this matter may be appropriate.” Citing former President Joseph Biden’s January 3, 2025 order prohibiting the acquisition, but reserving the right of the President “to issue further orders with respect to the Purchasers or U.S. Steel as shall in my judgment be necessary to protect the national security of the United States,” President Trump directed the Committee on Foreign Investment in the United States (CFIUS) to conduct this de novo review. Within 45 days, CFIUS is to submit a recommendation to the President describing whether any measures proposed by the parties are sufficient to mitigate any national security risks identified by CFIUS.

For additional background on the initial CFIUS review and President Biden’s order blocking this proposed acquisition, see Thompson Hine Update of January 6, 2025.

On April 7, 2025, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) again extended previous Russia-related General License (GL) 13 by issuing a revised GL 13M, “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024,” which states that U.S. persons are authorized to pay taxes, fees, or import duties, and purchase or receive permits, licenses, registrations, certifications, or tax refunds to the extent such transactions are prohibited by Directive 4. Such transactions are allowable provided they are ordinarily incident and necessary to such persons’ day-to-day operations in the Russian Federation. Directive 4 prohibits any transaction involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, including any transfer of assets to such entities or any foreign exchange transaction for or on behalf of such entities.

Previous GL 13L was set to expire on April 9, 2025; the revised GL 13M is set to expire on July 9, 2025. For additional background, please see our recent prior blog posts on this general license: September 30, 2024 and January 8, 2025.

On April 2, 2025, the U.S. Customs and Border Protection (CBP) issued a press release announcing that it had issued a Withhold Release Order (WRO) for imports of sea salt products from Taepyung Salt Farm, a South Korean company, “based on information that reasonably indicates the use of forced labor.” The WRO is effective immediately and CBP personnel at all U.S. ports of entry will detain sea salt products sourced from Taepyung Salt Farm.

The CBP’s press release notes that, during the course of the investigation, the agency identified the following International Labour Organization forced labor indicators: abuse of vulnerability, deception, restriction of movement, retention of identity documents, abusive living and working conditions, intimidation and threats, physical violence, debt bondage, withholding of wages, and excessive overtime. 

With the issuance of this WRO, CBP currently oversees and enforces 52 WROs and nine Findings.