Congress to Increase Funding for Key Trade Agencies: On Jan. 8, the House passed a three-bill minibus by a vote of 397-28, including the fiscal year (FY) 2026 Commerce, Justice, Science (CJS) and Related Agencies Appropriations bill. The minibus is the result of the House and Senate appropriations committees reconciling the differences between their respective spending bills. The CSJ bill would provide a significant increase in funding for key trade agencies, including the Office of the U.S. Trade Representative (USTR) and the Department of Commerce’s Bureau of Industry and Security (BIS) and International Trade Administration (ITA). USTR would receive $88 million, a 14% increase over FY2025 levels. Additionally, the bill would provide BIS with $235 million, a 23% increase over FY2025 levels, and ITA with $562 million, a 28% increase over FY2025 levels. It is anticipated that the Senate will consider the bill next week. Congress hopes to advance the minibus before the Jan. 30 shutdown deadline and fund key agencies through the end of FY2026 on Sept. 30.
 
Trump Administration Delays Increasing Furniture Tariffs: On Dec. 31, President Donald Trump issued a proclamation to delay a scheduled increase in Section 232 tariffs on upholstered furniture, kitchen cabinets, and vanities. Following the completion of a Section 232 investigation, the president imposed a 10% tariff on softwood lumber and timber imports, as well as a 25% tariff on upholstered wooden furniture products and completed kitchen cabinets and vanities, effective Oct. 15, 2025. The initial determination also outlined a scheduled tariff increase for upholstered furniture and kitchen cabinets and vanities to 30% and 50%, respectively, on Jan. 1, 2026. However, citing the importance and sensitivity of ongoing trade negotiations, the administration has postponed this increase for another year. Notably, the existing duties will be unaffected by the two pending legal challenges to the IEEPA-based tariffs before the Supreme Court: Trump v. V.O.S. Selections and Learning Resources v. Trump.
 
USTR Concludes Section 301 Investigation into Chinese Semiconductors: On Dec. 29, the Office of the U.S. Trade Representative (USTR) announced the results of its Section 301 investigation into China’s policies targeting global semiconductor dominance. The agency first initiated the investigation on Dec. 23, 2024, finding that China “has employed increasingly aggressive and sweeping non-market policies and practices in pursuing dominance of the [semiconductor] sector.” The investigation determined that such policies are unreasonable and burden or restrict U.S. commerce, thus meriting corresponding tariffs. Semiconductors from China will face an initial tariff rate of 0%, which will increase to an undisclosed rate on June 23, 2027. These new Section 301 semiconductor tariffs will stack upon the existing 50% tariff imposed on Chinese semiconductors pursuant to a separate Section 301 investigation related to forced technology transfers.
 
CIT Issues Blanket Order to Stay Tariff Refund Lawsuits: On Dec. 23, the Court of International Trade (CIT) issued an administrative stay on all tariff refund cases filed on or after Dec. 24. The standing order freezes all currently unassigned complaints seeking refunds of International Emergency Economic Powers Act (IEEPA) tariffs until a “final, unappealable decision” from the Supreme Court is issued. Unassigned cases or those filed after Dec. 24 will therefore not be assigned a judge or proceed to a merits briefing, the first step in the refund claim process. However, importers can attempt to lift the stay by demonstrating “good cause” as to why their case merits earlier consideration. On Jan. 6, the Supreme Court released its first schedule for 2026, with Jan. 9 listed as an opinion day. This is the first possible date that the justices could rule on the IEEPA tariff case, which has thus far been subject to an expedited review.