D.C. Insider August 2025: Expert Insights Into Key Trade Agreements

In the August 2025 edition of The ICR D.C. Insider, our experts offer details on key trade agreements, DOJ’s Whistleblower Rewards Program, and a possible SEC merger with CFTC.  Learn how what’s happening in Washington, D.C., could have an impact on your business. 

Tariffs & Trade

• Key trade agreements include:

  • General – With an Executive Order, President Trump set tariffs on a slew of countries, with the new levies – that range from 10% to 41% – set to begin on August 7^th.
  • Canada – President Trump said he hiked tariffs on Canada to 35% effective August 1^st. The tariffs only cover goods that are not exempted by the U.S.-Mexico-Canada trade agreement, effectively leaving 85% of Canadian goods duty-free.
  • The EU – President Trump said the U.S. and the European Union have reached a trade agreement where the U.S. will set a baseline tariff of 15% for European goods, including automobiles. In turn, the EU had agreed to buy $750 billion worth of energy products from the U.S. and invest an additional $600 billion in the U.S. Some products – including all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials – will not be subject to tariffs, EU President Ursula von der Leyen She also said that the new 15% tariff rate would not be added to any tariffs already in effect.
  • South Korea – The U.S. and South Korea agreed to a trade pact that will see the U.S. apply 15% tariffs to South Korean goods in return for duty-free treatment on many American products, President Trump said. South Korea (the U.S.’s 6^th biggest trading partner) will also contribute $350 billion for investments “owned and controlled” by the U.S. and a further $100 billion in energy purchases. South Korean President Lee Jae Myung said the $350 billion fund would help South Korean companies enter the U.S. market in key areas, including shipbuilding, semiconductors, secondary batteries, biotechnology, and energy.
  • Japan – The U.S. and Japan reached a trade agreement under which Japan will invest $550 billion in the U.S., the U.S. will receive 90% of the profits from the investments, and tariffs on Japanese exports to the U.S. (including on autos) will also be lowered to 15% from their current 25%. The president also said that the Japanese government would enter a “joint venture” for liquefied natural gas exportation in Alaska.
  • Mexico – President Trump agreed to a 90-day extension – and not an increase – of the existing tariffs on Mexican goods because the “complexities of a deal with Mexico are somewhat different than other nations.” Mexico will continue to pay a 25% Fentanyl tariff, 25% tariff on Cars, and 50% tariff on steel, aluminum, and copper.
  • The Philippines – President Trump and President Ferdinand Marcos of the Philippines concluded a trade deal whereby the Philippines will not charge any tariffs on U.S. imports into that country and the U.S. impose a 19% tariff on imports from the Philippines, higher than the 17% percent reciprocal duty the U.S. briefly imposed in April.

SEC

• SEC Chairman Supports Merger with CFTC – Securities and Exchange Commission (SEC) Chairman Paul Atkins said that while combining the SEC and the Commodity Futures Trading Commission (CFTC) is “not the primary job that we have before us,” that he has supported the idea “for years” and that it “makes a lot of sense – especially with the potentially overlapping jurisdictions” between the two. His comments come as Congress considers how to divide oversight of the cryptocurrency market between the SEC and the CFTC.
• Private Market Investments Poised to be Added to 401(k) Plans – President Trump is expected to sign an Executive Order designed to help make private market investments more available in U.S. retirement plans. The order would instruct the SEC and the Labor Department to provide guidance to employers and plan administrators on including investments in private equity, cryptocurrencies, and commodities in 401(k) plans.
  • In a related development, the House of Representatives passed a series of largely bipartisan bills designed to expand investor access to private markets, increasing monitoring of foreign countries regarding U.S. financial services, and tailoring SEC rules. The Equal Opportunity for All Investors Act, led by Mike Flood (R-NE), would require the SEC to revise the definition of “accredited investor” to include any person who is certified through an examination determined by the agency.
• PCAOB Chair Leaves Agency – Public Company Accounting Oversight Board (PCAOB) Chair Erica Williams left the agency at the behest of Chairman Atkins, a practice that previous SEC leaders have also followed.
• DOGE Pushes Relaxing SPAC Regulations – Department of Government Efficiency (DOGE) officials at the SEC have sought meetings with Commission staff to explore relaxing what some companies have described as burdensome and unnecessary regulations, including reworking Biden-era rules adopted last year on Special Purpose Acquisition Companies (SPACs); and requirements that private investment advisers confidentially disclose more data so regulators can better spot systemic risk.
• Whistleblower Awards Slow – The SEC has rejected a record percentage of whistleblower claims, denying awards in 31 consecutive orders issued between April 21^st and July 15^th covering at least 55 different tipsters. As the Commission tightens rules on whistleblower awards, approximately $20 million has been awarded so far this year compared to more than $60 million last year (where a total of $255 million was awarded). So far this year, the SEC has approved about 13% of all claims, compared to about 37% through the end of July 2024.

CFTC

• New Enforcement Referral Criteria – The Commodity Futures Trading Commission (CFTC) issued new criteria about when it will consider referring matters to the Department of Justice (DOJ). The advisory includes a set of factors that CFTC Enforcement Division staff should consider when determining whether to refer alleged violations of criminal regulatory offenses to the DOJ. Those factors include:
  • The harm or risk of harm, financial or otherwise, caused by the potential offense.
  • The potential gain to the alleged defendant that could result from the offense.
  • Whether the alleged defendant held specialized knowledge, expertise, or was licensed in an industry related to the rule or regulation at issue.
  • Evidence, if any is available, of the alleged defendant’s general awareness of the unlawfulness of his conduct as well as his knowledge or lack thereof of the regulation at issue.
  • Whether the alleged defendant is a recidivist or has otherwise engaged in a pattern of misconduct.
  • Whether DOJ’s involvement will provide additional meaningful protection to participants in the derivatives markets.

Supreme Court

• Supreme Court Agrees to Hear Case Over Investors’ Rights – The Supreme Court will hear arguments over whether activist investors can challenge certain decisions by investment fund managers to sue a series of closed-end funds under the 1940 Investment Company Act. The Justices will take up a petition from several firms that are contesting a ruling by the New York-based 2^nd Circuit Court of Appeals that allowed activist hedge fund manager Saba Capital to sue them under the 40 Act over their alleged attempt to diminish its voting power in their closed-end funds.
• Supreme Court Allow Firing of Democrat CPSC Commissioners – With a 6-3 decision, the Supreme Court  allowed President Trump to fire three Biden-appointed members of the Consumer Product Safety Commission (CPSC).

DOJ

• U.S. to Pay Whistleblowers for Antitrust Tips – The Department of Justice (DOJ) announced a new pilot program, The Whistleblower Rewards Program, that would pay individuals who come forward with information about criminal antitrust violations across industries. The program, a partnership between the Antitrust Division and the U.S. Postal Service, will award whistleblowers up to 30% of any criminal fines recovered when they voluntarily provide original information of antitrust violations that lead to fines or recoveries of at least $1 million.

FTC

• Court Blocks Click to Cancel Rule – The S. Court of Appeals for the 8^th Circuit in St. Louis granted a petition from business groups to block the Federal Trade Commission’s (FTC) “click to cancel” rule that was announced in October 2024, finding that the FTC made “fatal” procedural errors in its rulemaking process. The rule would have required companies selling subscriptions (from gym memberships to streaming platforms) to make the cancellation process take as few steps as the sign up process, mandated that sellers provide all relevant information to consumers before subscribing, and disclose when free trials or other promotional offers would end.

NLRB

• New NLRB Members Named – President Trump selected two new members for the National Labor Relations Board (NLRB). The two are Scott Mayer, Chief Labor Counsel at Boeing (a position he held during the company’s strike last year that temporarily halted production at key plants); and James Murphy, who has spent much of his career at the NLRB, serving as Chief Counsel to multiple board members. Key Biden-era rulings could be overturned if the labor board reaches a quorum and then it would be able to start issuing decisions (currently it does not have enough members to do that). The Board would also have a Republican majority and potentially fulfill the President’s desire to roll back rules seen as employee-friendly, including the Cemex framework that establishes rules for bargaining with unions, and a ban on so-called captive audience meetings. Mayer and Murphy still need to be confirmed by the Senate.

Cyber

• Cybersecurity Information Sharing Act Faces Expiration – Congress has until September 30^th to reauthorize the Cybersecurity Information Sharing Act – which incentivizes information-sharing on cyber threats between the private sector and the federal government through legal safeguards – is a 10-year-old law and has been described as “the most successful piece of cyber legislation”in the country. But despite widespread support from the Trump Administration, the private sector and bipartisan members of Congress, the faces an uncertain future as lawmakers stare down the start of the month-long August recess.

Commerce Department – Patents

• Patent System Overhaul Being Considered to Raise More Revenue – Commerce Department officials are discussing charging patent holders 1% to 5% of their overall patent value, a shift that could dramatically increase the fees companies pay. The new structure would be a major change in the 235-year-old practice of applying for a patent where holders typically pay the government a few thousand dollars, up to roughly $10,000, in flat-fee payments made periodically over many years. The new fee would be a much more exorbitant cost for some patent holders. 

China

• U.S. Allows AI Chips to be Sold in China – In an about-face, the Trump Administration will allow Nvidia to sell its H20 artificial intelligence chip in China. In April, the Commerce Department restricted sales of the chip. This approval comes in the context of broader trade negotiations, especially in exchange for rare earth mineral access for the U.S. form Chinese sources. Rep. John Moolenaar (R-MI), Chairman of the House Select Committee on the Chinese Communist Party, condemned the decision, warning that U.S. AI chips could “strengthen China’s military capabilities, suppress citizens and threaten U.S. innovation.”
• More Information About Chinese Companies on U.S. Stock Exchanges Sought – Select Committee Chairman Moolenaar and Chairman Rick Scott (R-FL) of the Senate Special Committee on Aging sent letters to the SEC and the Public Company Accounting Oversight Board (PCAOB), requesting an urgent briefing about risks posed to American investors by Chinese companies listed on U.S. stock exchanges. At issue is a 2022 agreement between Chinese regulators and the PCAOB regarding audit inspections of China-based companies. The lawmakers warn that despite this agreement; significant gaps remain in transparency and regulatory oversight.