December 19, 2025
International Trade Update
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IEEPA Case Remains Pending with the Year Coming to a Close: On Dec. 12, the Supreme Court held its final scheduled conference session of 2025 to discuss pending cases. Although the court does not formally adjourn, it appears unlikely that the justices will reach a decision in the consolidated cases challenging the president’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs without additional conference days scheduled. As a result, the earliest the court will rule is likely in January or February of 2026, though it could wait to issue a ruling until the end of the term in June 2026.
USCIT Denies Preliminary Injunction on IEEPA Tariffs: More than 400 companies filed lawsuits in the U.S. Court of International Trade (USCIT) challenging the Trump administration’s tariff actions ahead of the first liquidation deadline on Dec. 15. Under U.S. Customs and Border Protection (CBP) procedures, importers pay an estimated duty upon goods entry, but the final amount is not finalized until liquidation, which typically occurs within 314 days of import. Dec. 15 marked 314 days since the Trump administration imposed the first tariffs of the second term, including a 10% trafficking tariff on China and a 25% trafficking tariff on Canada and Mexico.
USCIT ruled against several companies requesting a preliminary injunction to suspend liquidation. The plaintiffs argued that the Dec. 15 liquidation deadline posed a substantial risk of irreparable harm because, once the duties paid are liquidated, it could jeopardize their ability to receive a future refund should the Supreme Court invalidate the International Emergency Economic Powers Act (IEEPA) tariffs. The three-judge panel denied the request, stating the “Plaintiffs cannot demonstrate irreparable harm resulting from liquidation pending a final decision in V.O.S. … [because] importers who paid IEEPA tariffs will be able to receive refunds after reliquidation.” Notably, the panel argues, “Having convinced this court to accept that importers who paid IEEPA tariffs will be able to receive refunds after reliquidation, and having benefited from the court’s subsequent conclusion that importers will not experience irreparable harm as a consequence of liquidation, the Government cannot later ‘assume a contrary position’ to argue that refunds are not available after liquidation.” In doing so, the USCIT preserves the rights of importers to receive full compensation from the Trump administration should the court strike down its authority to levy tariffs under IEEPA.
However, the government’s concessions are limited in scope. The Department of Justice (DOJ) only promised not to contest the court’s power to order reliquidation of tariff entries—not that it will agree to refunds without litigation. There is no commitment that the United States will not challenge the right to reliquidation or refund.
Greer Briefs Lawmakers on USMCA: This week, U.S. Trade Representative (USTR) Jamieson Greer held closed-door meetings with members of the House Ways and Means and Senate Finance committees to discuss the operation of the U.S.-Mexico-Canada Agreement (USMCA). According to his opening statement, Greer outlined USTR’s public consultation process, highlighting that “virtually all stakeholders also called for some sort of improvement to the Agreement.” He argued, “The USMCA has been successful to a certain degree … But at the same time, it is clear that we have not achieved all of our goals with respect to strengthening U.S. manufacturing capacity and creating good jobs.” In outlining key areas for improvement, Greer noted the U.S. trade deficit, Canada’s digital services tax and agricultural restrictions, Mexico’s labor rights violations and non-market economies’ growing investment in the border nations. As a result, “USTR’s view is that, whatever the USMCA’s value to the United States and even North America, the shortcomings are such that a rubberstamp of the Agreement is not in the national interest. USTR will keep the President’s options open, negotiating firmly to resolve the issues identified, but only recommending renewal if resolution can be achieved.”
USTR is statutorily required to provide lawmakers with an evaluation of USMCA, including the U.S. position on whether to extend the agreement beyond its initial 16-year term and specific proposals for actions to be considered at the Joint Review meeting, which should occur on or around July 1, 2026. However, many lawmakers were expecting that the agency would provide Congress with a written report, including greater details on the administration’s negotiating position and next steps. Greer stated, “I do want to recognize that some in Congress expected that USTR would prepare a written report on the operation of the Agreement in advance of the Joint Review … but the statute does not require a written report.” He suggested that by publishing his opening statement, USTR fulfilled its obligation.
In response, several Democratic lawmakers, including Sens. Elizabeth Warren (D-MA), Ben Ray Luján (D-NM), and Tina Smith (D-MN), sent a letter to USTR on Dec. 16, arguing, “The Trump Administration should not be hiding its goals and agenda for this renegotiation behind closed doors.” The senators requested that the agency publish a written report “outlining your negotiating objectives before the statutory deadline of January 2, 2026.”
Trump Administration Implements Tariff-Related Elements of U.S.-Switzerland- Liechtenstein Deal: On Dec. 18, the U.S. Trade Representative (USTR) and the Department of Commerce issued a joint notice to implement the tariff-related elements of the U.S.-Switzerland-Liechtenstein trade framework. The two European countries now face a 15% tariff rate on most products—a decrease from the 39% rate imposed in August that will create parity with other European countries. Products will face the higher of either a 15% rate or the U.S. most-favored-nation rate. Certain products from each country, including select agricultural goods, unavailable natural resources, aircraft and aircraft parts, and generic pharmaceuticals and their ingredients and chemical precursors, are exempted completely. The tariff rate will apply retroactively from Nov. 15, when the initial framework agreement was announced.
The implementation notice includes a stipulation that all tariff changes are contingent upon the successful negotiation of the trade agreement in Q1 2026. If the trade deal has not been finalized by March 31, 2026, the Trump administration will review and reconsider the tariff modifications. Other major elements of the framework agreement, including a $200 billion investment pledge by Swiss companies into the United States by 2028, remain outstanding. The framework agreement pledges that at least $67 billion worth of investment will occur in 2026.
Rep. Ross Introduces Joint Resolution to Block Tariffs on India: On Dec. 12, Rep. Deborah Ross (D-NC) introduced a joint resolution (H.J.Res.134) to terminate the national emergency declared to impose an additional 25% tariff on articles imported from India, effective Aug. 27. Currently, Indian goods are subject to a minimum 50% tariff, combining a 25% reciprocal tariff and a 25% tariff imposed as a “penalty” for India’s purchases of Russian oil and military equipment. The joint resolution would block the 25% tariff related to Russian oil purchases, while allowing the 25% reciprocal tariff to remain in place. The joint resolution utilizes a provision within the International Emergency Economic Powers Act (IEEPA) that allows lawmakers to terminate an emergency declaration. The provision classifies a resolution as privileged, which means it cannot be filibustered in the Senate and must come to a vote within 18 days of being introduced in either chamber.
However, while the Senate successfully passed similar resolutions in recent months, the House remains a significant obstacle. On Sept. 16, the House approved a rules package (H.Res.707) that maintains an existing policy that effectively prevents Democrats from forcing votes on resolutions aimed at overturning the president’s tariff agenda through March 30, 2026. The restriction originated in the rule through which Republicans brought the March continuing resolution (CR) to the House floor.
EU Continues to Push for Tariff Exemptions: The European Union (EU) continues to pressure the Trump administration for tariff relief across several key sectors, including medical devices, certain types of machinery and steel and aluminum derivative products. During a Dec. 15 interview, EU Trade Commissioner Maroš Šefčovič highlighted steel, aluminum and their derivatives as an area of focus during ongoing negotiations with the Trump administration, which continues to expand the list of steel and aluminum derivative products subject to Section 232 tariffs. The select group of products is part of the 27-page document sent by the European Commission to the Trump administration on Nov. 24 seeking tariff exemptions for various sensitive goods. These sensitive sectors were not covered by the trade framework agreement reached in July, which exempted items such as aircraft and generic drugs. Trade Representative Jameison Greer has indicated that the EU must first ratify the tariff rates agreed to in the initial framework agreement before additional concessions would be considered.
China Changes Its Export Control Licensing Process for Rare Earth Minerals: The government of the People’s Republic of China (PRC) has turned to a new type of export license as part of U.S.-China economic and trade negotiations. These new “general” rare earth export licenses provide year-long permits to export more rare earth minerals. Such licenses were a key product of the Trump-Xi meeting in November.
The PRC government has rolled out its first batch of new general license approvals for select Chinese companies and the Ford Motor Company. As of now, only “large Chinese rare earth companies” and select American firms are eligible for the license. Four Chinese rare earth firms: JL Mag Rare Earth, Ningbo Yunsheng, Beijing Zhong Ke San Huan High-Tech and Ningbo Jintian Copper have secured the streamlined licenses, all of which are magnet producers. The Chinese Ministry of Commerce (MOFCOM) issued a statement promising a timely approach for license applications for civilian-use rare earth-related items. These new licenses require far less documentation and detailed supply chain information compared to previous export licenses.
According to EU trade officials, the Chinese government has also begun issuing longer-term rare earth licenses to European firms as of mid-December. It is unclear whether this development applies solely to European companies or extends to Chinese firms as well. European companies have been unsuccessful thus far in gaining access to these new general licenses, as countries such as Germany lobby for approval.
USCIT Denies Preliminary Injunction on IEEPA Tariffs: More than 400 companies filed lawsuits in the U.S. Court of International Trade (USCIT) challenging the Trump administration’s tariff actions ahead of the first liquidation deadline on Dec. 15. Under U.S. Customs and Border Protection (CBP) procedures, importers pay an estimated duty upon goods entry, but the final amount is not finalized until liquidation, which typically occurs within 314 days of import. Dec. 15 marked 314 days since the Trump administration imposed the first tariffs of the second term, including a 10% trafficking tariff on China and a 25% trafficking tariff on Canada and Mexico.
USCIT ruled against several companies requesting a preliminary injunction to suspend liquidation. The plaintiffs argued that the Dec. 15 liquidation deadline posed a substantial risk of irreparable harm because, once the duties paid are liquidated, it could jeopardize their ability to receive a future refund should the Supreme Court invalidate the International Emergency Economic Powers Act (IEEPA) tariffs. The three-judge panel denied the request, stating the “Plaintiffs cannot demonstrate irreparable harm resulting from liquidation pending a final decision in V.O.S. … [because] importers who paid IEEPA tariffs will be able to receive refunds after reliquidation.” Notably, the panel argues, “Having convinced this court to accept that importers who paid IEEPA tariffs will be able to receive refunds after reliquidation, and having benefited from the court’s subsequent conclusion that importers will not experience irreparable harm as a consequence of liquidation, the Government cannot later ‘assume a contrary position’ to argue that refunds are not available after liquidation.” In doing so, the USCIT preserves the rights of importers to receive full compensation from the Trump administration should the court strike down its authority to levy tariffs under IEEPA.
However, the government’s concessions are limited in scope. The Department of Justice (DOJ) only promised not to contest the court’s power to order reliquidation of tariff entries—not that it will agree to refunds without litigation. There is no commitment that the United States will not challenge the right to reliquidation or refund.
Greer Briefs Lawmakers on USMCA: This week, U.S. Trade Representative (USTR) Jamieson Greer held closed-door meetings with members of the House Ways and Means and Senate Finance committees to discuss the operation of the U.S.-Mexico-Canada Agreement (USMCA). According to his opening statement, Greer outlined USTR’s public consultation process, highlighting that “virtually all stakeholders also called for some sort of improvement to the Agreement.” He argued, “The USMCA has been successful to a certain degree … But at the same time, it is clear that we have not achieved all of our goals with respect to strengthening U.S. manufacturing capacity and creating good jobs.” In outlining key areas for improvement, Greer noted the U.S. trade deficit, Canada’s digital services tax and agricultural restrictions, Mexico’s labor rights violations and non-market economies’ growing investment in the border nations. As a result, “USTR’s view is that, whatever the USMCA’s value to the United States and even North America, the shortcomings are such that a rubberstamp of the Agreement is not in the national interest. USTR will keep the President’s options open, negotiating firmly to resolve the issues identified, but only recommending renewal if resolution can be achieved.”
USTR is statutorily required to provide lawmakers with an evaluation of USMCA, including the U.S. position on whether to extend the agreement beyond its initial 16-year term and specific proposals for actions to be considered at the Joint Review meeting, which should occur on or around July 1, 2026. However, many lawmakers were expecting that the agency would provide Congress with a written report, including greater details on the administration’s negotiating position and next steps. Greer stated, “I do want to recognize that some in Congress expected that USTR would prepare a written report on the operation of the Agreement in advance of the Joint Review … but the statute does not require a written report.” He suggested that by publishing his opening statement, USTR fulfilled its obligation.
In response, several Democratic lawmakers, including Sens. Elizabeth Warren (D-MA), Ben Ray Luján (D-NM), and Tina Smith (D-MN), sent a letter to USTR on Dec. 16, arguing, “The Trump Administration should not be hiding its goals and agenda for this renegotiation behind closed doors.” The senators requested that the agency publish a written report “outlining your negotiating objectives before the statutory deadline of January 2, 2026.”
Trump Administration Implements Tariff-Related Elements of U.S.-Switzerland- Liechtenstein Deal: On Dec. 18, the U.S. Trade Representative (USTR) and the Department of Commerce issued a joint notice to implement the tariff-related elements of the U.S.-Switzerland-Liechtenstein trade framework. The two European countries now face a 15% tariff rate on most products—a decrease from the 39% rate imposed in August that will create parity with other European countries. Products will face the higher of either a 15% rate or the U.S. most-favored-nation rate. Certain products from each country, including select agricultural goods, unavailable natural resources, aircraft and aircraft parts, and generic pharmaceuticals and their ingredients and chemical precursors, are exempted completely. The tariff rate will apply retroactively from Nov. 15, when the initial framework agreement was announced.
The implementation notice includes a stipulation that all tariff changes are contingent upon the successful negotiation of the trade agreement in Q1 2026. If the trade deal has not been finalized by March 31, 2026, the Trump administration will review and reconsider the tariff modifications. Other major elements of the framework agreement, including a $200 billion investment pledge by Swiss companies into the United States by 2028, remain outstanding. The framework agreement pledges that at least $67 billion worth of investment will occur in 2026.
Rep. Ross Introduces Joint Resolution to Block Tariffs on India: On Dec. 12, Rep. Deborah Ross (D-NC) introduced a joint resolution (H.J.Res.134) to terminate the national emergency declared to impose an additional 25% tariff on articles imported from India, effective Aug. 27. Currently, Indian goods are subject to a minimum 50% tariff, combining a 25% reciprocal tariff and a 25% tariff imposed as a “penalty” for India’s purchases of Russian oil and military equipment. The joint resolution would block the 25% tariff related to Russian oil purchases, while allowing the 25% reciprocal tariff to remain in place. The joint resolution utilizes a provision within the International Emergency Economic Powers Act (IEEPA) that allows lawmakers to terminate an emergency declaration. The provision classifies a resolution as privileged, which means it cannot be filibustered in the Senate and must come to a vote within 18 days of being introduced in either chamber.
However, while the Senate successfully passed similar resolutions in recent months, the House remains a significant obstacle. On Sept. 16, the House approved a rules package (H.Res.707) that maintains an existing policy that effectively prevents Democrats from forcing votes on resolutions aimed at overturning the president’s tariff agenda through March 30, 2026. The restriction originated in the rule through which Republicans brought the March continuing resolution (CR) to the House floor.
EU Continues to Push for Tariff Exemptions: The European Union (EU) continues to pressure the Trump administration for tariff relief across several key sectors, including medical devices, certain types of machinery and steel and aluminum derivative products. During a Dec. 15 interview, EU Trade Commissioner Maroš Šefčovič highlighted steel, aluminum and their derivatives as an area of focus during ongoing negotiations with the Trump administration, which continues to expand the list of steel and aluminum derivative products subject to Section 232 tariffs. The select group of products is part of the 27-page document sent by the European Commission to the Trump administration on Nov. 24 seeking tariff exemptions for various sensitive goods. These sensitive sectors were not covered by the trade framework agreement reached in July, which exempted items such as aircraft and generic drugs. Trade Representative Jameison Greer has indicated that the EU must first ratify the tariff rates agreed to in the initial framework agreement before additional concessions would be considered.
China Changes Its Export Control Licensing Process for Rare Earth Minerals: The government of the People’s Republic of China (PRC) has turned to a new type of export license as part of U.S.-China economic and trade negotiations. These new “general” rare earth export licenses provide year-long permits to export more rare earth minerals. Such licenses were a key product of the Trump-Xi meeting in November.
The PRC government has rolled out its first batch of new general license approvals for select Chinese companies and the Ford Motor Company. As of now, only “large Chinese rare earth companies” and select American firms are eligible for the license. Four Chinese rare earth firms: JL Mag Rare Earth, Ningbo Yunsheng, Beijing Zhong Ke San Huan High-Tech and Ningbo Jintian Copper have secured the streamlined licenses, all of which are magnet producers. The Chinese Ministry of Commerce (MOFCOM) issued a statement promising a timely approach for license applications for civilian-use rare earth-related items. These new licenses require far less documentation and detailed supply chain information compared to previous export licenses.
According to EU trade officials, the Chinese government has also begun issuing longer-term rare earth licenses to European firms as of mid-December. It is unclear whether this development applies solely to European companies or extends to Chinese firms as well. European companies have been unsuccessful thus far in gaining access to these new general licenses, as countries such as Germany lobby for approval.