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

U.S.-Iran War Updates: 

  • United States and Iran agree on reopening of Strait of Hormuz for ten days.  Iranian Foreign Minister Seyed Abbas Araghchi announced at press time that, “in line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of ceasefire[.]”  President Trump has since confirmed that the U.S. naval blockade, imposed Monday April 13 in an effort to force Iran to negotiate with the United States, “WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN, ONLY, UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE.”
  • Washington and Tehran observe uneasy ceasefire. More than six weeks into the war, the United States and Iran have entered into a temporary ceasefire following efforts by Pakistani Prime Minister Shehbaz Sharif to defuse tensions between the two nations. The ceasefire is set to expire on April 20. 
  • U.S. and Iranian negotiators fail to secure global resolution to war. On April 11, Vice President Vance and Iran’s speaker of parliament, Mohammad Bagher Ghalibaf, met in Islamabad to negotiate an end to the U.S.-Iran war. The two sides failed to reach an agreement after nearly 21 hours of negotiations, as Iran reportedly refuses to provide an “affirmative commitment that [it] will not seek a nuclear weapon . . . [or] the tools that would enable them to quickly achieve a nuclear weapon,” as described by Vice President Vance. President Trump has since indicated that the United States and Iran may return to the negotiating table this week. 
  • United States blockades Strait of Hormuz. President Trump directed the U.S. Navy to blockade ships entering or exiting Iranian ports beginning April 13. Ships transiting the Strait of Hormuz while traveling between non-Iranian ports are not subject to the blockade. China criticized the blockade, describing it as “a da·       Lebanon and Israel announce ten-day ceasefire, effective April 16, after first direct talks in three decades.  The negotiations—mediated by the United States—lasted nearly two hours and saw the two countries agree to “work to create conditions conducive to lasting peace between the two countries, full recognition of each other’s sovereignty and territorial integrity, and establishing genuine security along their shared border, while preserving Israel’s inherent right to self-defense.”  Hezbollah, which was not represented at the April 14 negotiations, has emphasized that they “are not bound” by agreements between Israel and Lebanon.ngerous and irresponsible move.”
  • Lebanon and Israel announce ten-day ceasefire, effective April 16, after first direct talks in three decades.  The negotiations—mediated by the United States—lasted nearly two hours and saw the two countries agree to “work to create conditions conducive to lasting peace between the two countries, full recognition of each other’s sovereignty and territorial integrity, and establishing genuine security along their shared border, while preserving Israel’s inherent right to self-defense.”  Hezbollah, which was not represented at the April 14 negotiations, has emphasized that they “are not bound” by agreements between Israel and Lebanon.
  • President Trump threatens 50 percent tariff on countries supporting Iran. On April 9, President Trump warned that any country supplying military equipment to Iran “will be immediately tariffed, on any and all goods sold to the United States of America. 50%, effective immediately.” Administration officials have been unclear on how the president would impose such a tariff. White House National Economic Council Director Kevin Hassett suggested that such secondary tariffs may be imposed pursuant to the International Emergency Economic Powers Act (“IEEPA”), despite the Supreme Court’s decision in Learning Resources, Inc. v. Trump, while United States Trade Representative (“USTR”) Jamieson Greer suggested IEEPA could be used only to “prohibit” trade—not impose a tariff. 

Tariff Developments:

  • U.S. Customs and Border Protection (“CBP”) intends to launch Phase 1 of the IEEPA tariff refund process on April 20. Importers of record (“IORs”) and authorized customs brokers may soon submit refund requests through the Consolidated Administration and Processing of Entries (“CAPE”) functionality within the Automated Commercial Environment (“ACE”) for (i) unliquidated entries and (ii) entries liquidated within the past 80 days. Entries that do not qualify for Phase 1 processing are expected to be captured by future CAPE phases. For additional information, see Blank Rome’s client alert.   
  • President Trump modifies Section 232 tariffs on imported steel, copper, and aluminum. The tariff now applies to the full customs value of the article, regardless of the metal content. The rate is 50 percent for items of base metal identified in the Proclamation, and  25 percent for derivative products identified in the Proclamation. As Customs has explained, in practice, this means that “[g]oods that are listed as articles or derivatives of more than one metal shall only be subject to one of the respective duty rates established by . . . Proclamation [11021], even if the good contains aluminum and steel, aluminum and copper, steel and copper, or all three metals.”
  • Washington imposes 100 percent tariff on pharmaceuticals and pharmaceutical ingredients pursuant to Section 232. Companies that have developed plans, approved by the U.S. Department of Commerce, to onshore production in the United States will be permitted—for a period of four years—to import covered products at a 20 percent tariff rate. Products originating in Japan, the European Union, South Korea, Switzerland, and Lichenstein will be subject to a 15 percent tariff rate, while UK-origin products will face a 10 percent duty.

U.S.-Venezuela updates: 

China issues new regulations to combat decoupling by multinationals. 

  • On March 7, Chinese Premier Li Qiang signed into law the “Regulations on Industrial and Supply Chain Security,” an 18-part decree by the State Council of the People’s Republic of China. According to the Chinese Communist Party-controlled Global Times, the regulations are intended to address “two major scenarios”:First, when foreign countries, regions, or international organizations violate international law and basic norms of international relations by imposing discriminatory prohibitions, restrictions, or similar measures against China.
    Second, when foreign organizations or individuals violate normal market transaction principles, interrupt normal transactions with Chinese citizens or entities, adopt discriminatory measures, or engage in other acts that cause or threaten substantial harm to China's industrial and supply chain security.
  • The new regulations have stoked concerns in the business community that the Chinese government will punish companies that seek to curb Chinese supply or customer relationships based on domestic legal requirements or political pressure.

OFAC issues guidance on sham transactions. On March 31, OFAC issued guidance to “highlight sanctions risks arising from sham transactions used to evade sanctions and to identify factors to consider when evaluating whether property may be the subject of a sham transaction.” The publication describes various methodologies that sanctioned persons may use to evade detection, such as “opaque legal structures (including trusts), proxies, straw owners, and front businesses.”

FCC tightens rules on foreign‑made networking gear. The U.S. Federal Communications Commission (“FCC”) expanded its Covered List to include foreign-made consumer routers, effectively barring new models produced abroad—including many Chinese-manufactured devices—from being authorized for import, sale, or marketing in the United States due to national security and cybersecurity concerns. Notably, the rule targets does not require removal of routers already in use, and provides for a “conditional approval” mechanism whereby companies can seek authorization for foreign-produced items under certain circumstances.

Free trade agreements and international partnership initiatives:

  • Australia and European Union reach free trade agreement. On March 24, after nearly eight years of negotiations, the European Union and Australia signed a landmark free trade agreement eliminating tariffs on 98 percent of Australian exports to the European Union and over 99 percent of tariffs on EU goods entering Australia. The deal covers key sectors including agriculture, critical minerals, and services, and comes as both sides aim to broaden their trading partnerships and reduce economic reliance on China amid growing uncertainty over U.S. tariff policy. In conjunction with the trade pact, the leaders announced a new security and defense partnership that will bring closer military cooperation in areas including defense industries, maritime security, and cybersecurity. 
  • EU-Mercosur deal to take provisional effect following February referral to the European Court of Justice. On March 23, the European Union notified Mercosur member states that the interim trade agreement between the two blocs would apply provisionally starting May 1, 2026. The provisional application includes the immediate removal of tariffs on certain products, as well as collaboration on labor rights and climate change.
  • United States and Japan announce new partnerships during Trump-Takaichi summit. On March 19, during a summit between President Trump and Prime Minister Sanae Takaichi, Washington and Tokyo announced the U.S.-Japan Action Plan on Critical Minerals. Pursuant to the plan, the United States and Japan will discuss efforts related to border-adjusted price floors for critical minerals, geological mapping coordination, and coordinated stockpiling. 
  • Pax Silica initiative expands. Last month, Sweden became the twelfth member—and the first EU member state—to sign the Pax Silica Declaration, furthering the initiative’s goal of building a network of trusted partners to secure global technology supply chains and address AI-related opportunities. Shortly thereafter, the Department of State announced a proposed $250 million Pax Silica Fund to support critical minerals extraction, processing, and manufacturing assets that underpin secure semiconductor supply chains. 

China escalates inspections and detentions of Panama-flagged vessels. Since March 8, China has dramatically escalated safety inspections and detentions of Panama-flagged vessels in its ports, with 91 ships detained in one month, far exceeding historical norms. The enforcement campaign follows a January 30 ruling by Panama’s Supreme Court invalidating Hong Kong-based CK Hutchison’s 1997 concession to operate two key terminals on the Pacific and Atlantic sides of the Panama Canal, after which the Panamanian government appointed U.S.-affiliated firms Maersk APM Terminals and MSC’s Terminal Investment Limited as interim operators.

Ukraine and Saudia Arabia sign framework defense cooperation agreement. In late March, the two countries signed an agreement providing for future contracts, technological cooperation, and investments. In a later statement, Ukranian President Volodymyr Zelenskyy remarked that Ukraine is “ready to share [its] expertise and systems with Saudi Arabia and to work together to strengthen the protection of lives.”

Italian Prime Minister Giorgia Meloni announces suspension of Italy-Israel defense accord. Originally ratified in 2005, the defense pact facilitated cooperation on items such as “defense industry and procurement policy” and was up for renewal this year.

Global Elections:

  • Péter Magyar defeats Viktor Orbán in Hungarian elections. On April 12, Hungarian voters elected Péter Magyar as the country’s new Prime Minister, ousting Viktor Orbán after 16 years in power. 
  • Thailand reelects Prime Minister Anutin Charnvirakul. Prime Minister Charnvirakul has become the first Thai official to be voted into office in consecutive terms in two decades. 
  • To Lam Consolidates power as President of Vietnam. On April 7, the Vietnamese national assembly unanimously elected current General Secretary of the Communist Party To Lam as President of Vietnam, making Lam the most powerful Vietnamese leader in recent decades by consolidating the nation’s two highest offices for the next five years. 

For continuous, up-to-date information on the evolving administrative landscape, check out Blank Rome’s Trump Administration Resource Hub. Explore previous BR International Trade Reports here.

In Case You Missed It 

Trade Rules: Trump Administration Revises Export Restrictions on Advanced Semiconductors While Levying Additional Tariffs

Blank Rome partner Anthony Rapa and associate Rachel D. Evans authored this Reuters article discussing the Trump Administration’s newly issued export licensing review policy and tariffs affecting exports and imports of certain advanced semiconductors and computing items, with significant implications for artificial intelligence.

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DOD-Anthropic Fallout Sends Warning Signal to Contractors

Blank Rome partners Dominique L. Casimir and Kenneth J. Nunnenkamp were featured in this Law360 article discussing the Trump Administration’s recent designation of artificial intelligence company Anthropic as a supply chain risk to national security.

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Upcoming Events

Swedish Export Control Association Sanctions Seminar

Blank Rome partner Anthony Rapa will be speaking at the Swedish Export Control Association’s Sanctions Seminar on May 7, 2026, in Stockholm, Sweden. The Swedish Export Control Association supports businesses operating internationally in meeting compliance requirements under Swedish, European Union, and United States laws governing the export of military equipment and dual-use items.

Read More >>

To learn more about other Recent Developments or Upcoming Events, click here.

To read more about Blank Rome's International Trade practice, please visit our website.

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© 2026 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.