In the April 2025 edition of The ICR D.C. Insider, we share our insights and analysis about developments in Washington that could have an immediate and long-term impact on your business.
Tariffs
- President Trump announced a sweeping new tariff plan, marking a stark shift in U.S. trade policy. The plan combines two concepts – a universal tariff and nation-specific duties – on about 60 nations. Key elements include:
- A 10% tariff on all imports that is effective April 5th.
- Canada and Mexico are excluded from the reciprocal tariff regime. They are still subject to plans to impose 25% tariffs on most imports to the U.S., though the Administration has given an exemption for autos and many other goods. Here’s a list of the products and countries exempted from the tariffs.
- Other nations will be hitwith what the President calls a “discounted reciprocal tariff.”
- The higher rates are for nations the White House considers bad actors on trade.
- Duties will be34% on China (in addition to existing 20% tariffs on Chinese imports, for an effective rate of 54%); 24% on Japan; 20% on the E.U., in lieu of the universal 10% tariff; 46% on Vietnam; and 32% on Taiwan – with and April 9th effective date. Full list is here.
- As for the China de minimis exception, adequate systems are now in place to collect duties on shipments valued under $800, and the exemption will now officially close as of May 2nd.
- Immediate implementation of 25% tariffs on all foreign-made autos.
- Pharmaceutical products are among the goods that will not be subject to the reciprocal tariffs announced today, according to a White House fact sheet.
- Other goods not subject to the reciprocal tariffs include copper, semiconductors, lumber, bullion, energy and certain minerals that are not available in the U.S., the fact sheet said. It also includes products already subject to President Trump’s recently announced tariffs, including steel, aluminum, autos and auto parts.
Commerce
- Tougher Export Control Regime in the Offing – In a speech, Commerce Secretary Howard Lutnick outlined an expectation that the Trump Administration would impose tougher penalties on those who run afoul of an export control-regime that has increasingly targeted China, adding that export controls would now be a regular part of trade deal negotiations with international partners.
- The aggressive use of export controls, especially those aimed at hemming in China, will likely continue under President Trump, a top export control official under former President Joe Biden said. An increased push for export controls that began in Trump’s first term accelerated under Biden, and there is unlikely to be a major shift in direction, Matt Axelrod, the former assistant secretary for export enforcement at the U.S. Commerce Department, said.
SEC
- Rulemaking Blueprint Outlined – Acting Securities and Exchange Commission (SEC) Chairman, Mark Uyeda, outlined his thoughts on potential changes to the Commission’s approach to rulemaking. In a speech, he called out, among other initiatives, elongating/restoring the public comment period for proposed rules; consideration to re-propose rules; or in certain circumstances, re-opening the comment file for a rule proposal. Uyeda also said: “We must be clear-eyed about how existing proposals fare under [the framework of effective and cost-efficient regulation, and…] the Commission could consider options that include withdrawing or re-proposing existing rule proposals. My concerns with some existing rule proposals, including those addressing the safeguarding of advisory client assets, outsourcing by investment advisers, ESG disclosures for funds and advisers, and digital engagement practices, are a matter of public record.”
- SEC Drops its Defense of Climate Change Reporting Rules – The SEC voted to end its legal defense of its climate disclosure rules, effectively walking away from its regulation requiring companies to report on climate risks and greenhouse gas emissions, without actually having to rescind the rules.
- Paul Atkins Confirmation Hearing – Appearing before the Senate Banking Committee, SEC Chairman nominee Paul Atkins noted in his testimony that, “a top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.”
FTC
- Trump Fires Remaining Two Democrat Commissioners – In an unprecedented action, President Trump fired The Federal Trade Commission’s (FTC) two Democratic commissioners, the latest moves in his campaign to exert more control over independent government agencies. The two commissioners, Rebecca Slaughter and Alvaro Bedoya, both plan to file suit, saying their dismissals are illegal. The traditionally five-member FTC has a long history of working as an independent regulatory agency, with the majority of its members belonging to the same political party as the president.
- Chairman Says Tech Censorship Practices May Violate Antitrust Law – FTC Chairman Andrew Ferguson has now hinted that the agency may have the authority to take action against tech companies for censoring user speech – not as a free speech matter, but as a potential abuse of market power. He said, “I’m looking for exercises of market power that might reveal themselves in censorship.”
- New FTC Approach on M&A – At Yale’s CEO Caucus meeting in Washington, Ferguson articulated the FTC’s new view on merger and acquisition reviews: “If we think conduct or merger is going to hurt Americans economically, I’m taking you to court. But if we don’t, we’ll get the hell out of the way,” he said in the closed-door meeting, which included JPMorgan Chase’s Jamie Dimon, Goldman Sachs’ David Solomon and Dell’s Michael Dell. Ferguson then signified another element of the FTC’s new direction: “But I want to be really clear about something. This isn’t the Bush administration.”
- Roundtable Scheduled on Tech, Children, and The Dangers of Big Tech – The FTC announced a workshop entitled “The Attention Economy: How Big Tech Firms Exploit Children and Hurt Families,” scheduled for May 28th. The event will bring together parents, child safety experts, and government leaders to discuss how Big Tech companies impose addictive design features, erode parental authority, and fail to protect children from exposure to harmful content.
Treasury
- Beneficial Ownership Rule Revised – The Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, issued an interim final rule that would significantly narrow the reporting requirements under the Corporate Transparency Act (CTA). The new rule cuts the number of businesses required to report beneficial ownership information. Treasury had previously estimated that 32 million entities would be subject to the requirement. Under the revised policy, the department says only about 11,600 foreign firms operating in the U.S. would have to disclose their ownership on average each year.
Justice
- New Antitrust Task Force Launched – The Department of Justice’s Assistant Attorney General for Antitrust, Abigail Slater, hailed the launch of the new Anticompetitive Regulations Task Force’s mission, which “will stand against harmful barriers to competition whether imposed by public regulators or private monopolists.” The Task Force’s goals are to identify and curtail regulations that “undermine free market competition and harm consumers, workers and businesses,” and will seek public input about which regulations are deemed too onerous across vast portions of the economy, including housing, transportation, food, energy, and health care.
China
- U.S. Blacklists More Chinese Technology Companies – The Trump Administration added nearly 80 companies to the Commerce Department’s Bureau of Industry and Security (BIS) blacklist, known as the Entity List. The bulk of them are Chinese, and the department said it acted to limit China’s access to high-performance computing for military applications and stymie the development of its hypersonic weapons program. American businesses seeking to sell technology to these companies will need approval from the government.
- Stronger Trade Enforcement Sought – The Chairman John Moolenaar (R-Mich.) and Ranking Member Raja Krishnamoorthi (D-Ill.) of the House Select Committee on the Chinese Communist Party, sent a letter to Attorney General Pam Bondi, Secretary of Homeland Security Kristi Noem, and U.S. Trade Representative Jamieson Greer calling for them to take additional action against unlawful Chinese trade practices. The letter urges the officials to investigate and take appropriate enforcement actions against companies that bypass U.S. trade laws by unlawfully shipping products through third countries. It highlights the serious harm these practices have inflicted on many U.S. industries, including automotive parts, textiles, apparel support, as well as the PRC’s trafficking of precursor chemicals used to produce fentanyl.
- Bipartisan & Bicameral Bills to Curb Chinese Investment Reintroduced – Andy Barr (R-Ky.), Rep. Moolenaar, and House Foreign Affairs Committee Chairman-Emeritus Michael McCaul (R-Texas) have reintroduced bipartisan legislation to prevent American capital from financing the Chinese Communist Party’s military buildup, technological dominance, and human rights abuses. The Foreign Investment Guardrails to Help Thwart (FIGHT) China Act establishes a comprehensive outbound investment screening regime creates targeted restrictions to ensure U.S. investors are not unwittingly financing Chinese military and surveillance capabilities. Sen. John Cornyn (R-Texas) and a bipartisan group of senators introduced a companion bill in the Senate.
- New CFIUS Rules Proposed – President Trump’s America First Investment Policy (AFIP) memorandum represents a significant shift in U.S. foreign investment review processes, establishing a 2-track system that expedites reviews for friends and sharpens scrutiny of investments from other nations, including China. Allied investors will be assured of fewer regulatory hurdles, like expedited environmental reviews for investments of $1 billion or more. By contrast, China and others will face enhanced screening and potential limits in sensitive technologies like artificial intelligence (AI), semiconductors, biotechnology, hypersonics, aerospace, and advanced manufacturing. Implementation will require both Congressional and regulatory action.
