Welcome to this month’s issue of The BR International Trade Report, Blank Rome’s monthly digital newsletter highlighting international trade, cross-border investment, and geopolitical risk issues impacting businesses domestically and abroad. We invite you to share this resource with your colleagues and visit Blank Rome’s International Trade webpage for more information about our team.
Recent Developments
United States and China agree on framework to ease trade tensions in London talks. On June 9-10, following weeks of escalating tensions over export controls, U.S. Treasury Secretary Scott Bessent, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer met with their Chinese counterparts in London for a round of trade talks aimed at stabilizing relations. On June 10, the parties announced that they had reached a deal, which Secretary Lutnick described as a “framework to implement” the earlier agreement that the countries reached in Geneva last month. Details are still emerging, but commentary indicates that China has agreed to lift certain export controls over rare earth minerals in exchange for certain concessions regarding U.S. export controls and visas for Chinese students.
U.S. Treasury Secretary Bessent testifies that the Trump Administration is “highly likely” to extend the reciprocal tariff deadline for certain countries. Secretary Bessent, testifying before the House Ways and Means Committee on June 11, explained that countries negotiating with the United States “in good faith” are “highly likely” to receive an extension to continue negotiating as the July 8 reciprocal tariff deadline approaches. He further noted that the United States is working towards deals with “18 important trading partners,” and that countries that do not negotiate will not receive an extension.
U.S. Court of International Trade (“CIT”) holds IEEPA-based tariffs to be unlawful, with the matter headed to the Federal Circuit on appeal. The CIT ruled that President Trump’s sweeping tariffs issued under authority of the International Emergency Economic Powers Act (“IEEPA”) were unlawful, finding that IEEPA does not grant the president “unbound authority” over transnational commerce. The U.S. Court of Appeals for the Federal Circuit has stayed the CIT’s ruling pending appeal, at least until the court hears oral arguments on July 31, allowing tariffs to remain in effect for the time being. For more information, please see Blank Rome’s client alert.
President Trump raises tariffs on steel and aluminum after announcing U.S. Steel-Nippon Steel “partnership.” In late May, President Trump announced a partnership between U.S. Steel and Japan’s Nippon Steel, apparently reversing a Biden Administration decision to block Nippon Steel’s acquisition of U.S. Steel over national security concerns. Following the announcement, the Trump Administration doubled Section 232 tariffs on steel and aluminum from 25 percent to 50 percent, effective June 4.
Washington takes steps to ease sanctions on Syria and promote investment. The U.S. Department of the Treasury issued General License 25 (“GL 25”) under the Syrian Sanctions Regulations (“SSR”), suspending most SSR restrictions. Specifically, GL 25 authorizes new investment in Syria, exportation of services to Syria, dealings in Syrian petroleum and petroleum products, and transactions involving the transitional Syrian government, the Syrian central bank, and certain blocked persons. Several days later, Tom Barrack—the newly appointed special envoy to Syria—met with Syrian officials in Damascus, later remarking on social media that “we have already unlocked billions of dollars in international investment for Syria. . . . Thanks to [President Trump], Syria is OPEN FOR BUSINESS[.]”
China threatens legal action against persons complying with U.S. semiconductor export controls. As we previously reported, on May 13, the U.S. Department of Commerce issued guidance alerting parties to the risks of using certain Huawei Ascend chips, on the ground that they were likely produced in violation of U.S. export controls. Shortly after, China’s Ministry of Commerce warned of legal action against any entity participating in U.S. measures to discriminate against Chinese semiconductors, stating that “any organization or individual that implements or assists in the implementation of U.S. measures will be suspected of violating the Anti-Foreign Sanctions Law of the People’s Republic of China and other laws and regulations, and shall bear corresponding legal liabilities.”
Washington and Brussels continue to work towards a trade deal. Reports indicate that the United States and the European Union have agreed to fast track trade negotiations following a turbulent May, which at one point saw President Trump threaten to impose a 50 percent tariff on EU goods effective June 1 in response to negotiations stalling out. Following a call with European Commission President Ursula von der Leyden, President Trump extended the 50 percent tariff deadline to July 9.
White House announces trade deal with the United Arab Emirates. On May 15, the United States and the United Arab Emirates announced over $200 billion in commercial deals between the two nations. The deals, targeting interests such as frontier technologies, aerospace, energy, and critical minerals, aim to expand U.S. investments and market access in the UAE. Key allocations include $14.5 billion for the U.S. aviation sector, $4 billion for an aluminum smelting project in Oklahoma, $60 billion to expand oil and gas production, and a gallium project to boost the U.S. semiconductor supply chain.
EU and UK impose additional sanctions on Russia, as the United States considers similar measures. As tensions between Ukraine and Russia escalate, the European Union and the United Kingdom issued their latest round of sanctions against Russia on May 20, and on June 10, the European Commission proposed further restrictive measures. Meanwhile, on May 25, following Russia’s largest aerial attack on Ukraine, President Trump expressed frustration, calling Russian President Vladimir Putin “absolutely crazy.” President Trump has suggested that the United States may impose additional sanctions on Russia, should peace talks stall and Russian attacks continue.
Global Elections.
- Lee Jae-myung wins South Korean presidential election. On June 3, Lee Jae-myung of the center-left Democratic Party defeated his conservative opponent Kim Moon-soo in the South Korean presidential election. Lee, set to govern for five years, faces the task of guiding the nation through the economic and political turmoil sparked by former president Yoon Suk Yeol’s December 2024 imposition of martial law and the country’s delicate trade ties with both the United States and China.
- Karl Nawrocki wins Polish presidential election. On June 2, right-wing historian Karl Nawrocki was elected President of Poland with 50.89 percent of the vote, narrowly defeating Warsaw’s liberal mayor, Rafal Trzaskowski.
- Portugal’s Democratic Alliance party wins snap election. On May 18, Portugal’s right-of-center Democratic Alliance won a snap parliamentary election, but fell short of a majority. Chega, a populist right party, bested the Socialist party to become the main opposition party, effectively ending the five-decade long streak of two-party dominance.
- Dutch coalition collapses. On June 3, the conservative Dutch government collapsed following Geert Wilder’s withdrawal of his Party for Freedom (“PPV”) from the four-party right-wing coalition. The same day, Prime Minister Dick Schoof tendered his resignation. The Dutch government will continue to operate in a caretaker capacity, while a snap election has been called for October 29, 2025.
- Venezuelan President Nicolas Maduro maintains majority in National Assembly. On May 25, Venezuelan President Nicolas Maduro claimed victory in the country’s parliamentary and regional elections, despite opposition boycotts. For the first time in the country’s history, voters also elected representatives for the Essequibo region—a territory largely controlled by Guyana that Venezuela claims as its own.
- Mexico conducts historic elections for all judges. In early June, Mexico held elections for over 2,600 judicial positions, transitioning from appointment-based to selection-based system. President Claudia Sheinbaum praised the elections as a “complete success,” claiming the judicial overhaul will enable Mexico to become “more free, just and democratic.” Critics argue judicial elections will entrench the ruling Morena Party’s power and politicize the bench. New judges will assume their roles in September. Notably, only half of Mexico’s federal judges (including its entire Supreme Court) were up for election. The country plans to host a second election, in 2027, for the remaining judicial positions.
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