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Welcome to this month’s issue of&nbsp;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&nbsp;<a href="https://www.blankrome.com/services-and-industries/international-trade/">International Trade</a>&nbsp;webpage for more information about our&nbsp;<a href="https://www.blankrome.com/services-and-industries/international-trade/#team">team</a>.&nbsp;

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President Trump visits China. On May 13, President Trump <a href="https://apnews.com/article/trump-xi-china-trip-arrival-353c768987542843e2033aa684266879">arrived in Beijing</a> to meet with Chinese President Xi Jinping, marking the first visit by a sitting U.S. president to China since 2017. The two are expected to discuss potential trade deals, as well as the situations regarding Iran and Taiwan. CEOs of major U.S. tech companies <a href="https://thehill.com/homenews/administration/5875556-donald-trump-xi-jinping-china-business-leaders/">joined</a> President Trump for the visit.

U.S. Court of International Trade finds universal tariffs imposed under Section 122 of the Trade Act of 1974 unlawful. In a 2-1 decision in <a href="https://www.cit.uscourts.gov/sites/cit/files/26-47.pdf">Burlap and Barrel, Inc. v. Trump</a>, a three-judge panel at the U.S. Court of International Trade (“CIT”) held that President Trump’s tariff proclamation’s “use of trade and current account deficits to stand in the place of balance-of-payment deficits within the meaning of the statute renders [the Section 122 tariffs] ultra vires.”&nbsp; Unlike the CIT’s May 2025 decision in V.O.S. Selections, Inc. v. United States, in which the court vacated the President’s tariff orders and permanently enjoined their enforcement nationwide, the CIT limited its relief to the State of Washington and two private plaintiffs. On May 12, the U.S. Court of Appeals for the Federal Circuit issued an <a href="https://www.barrons.com/news/us-appeals-court-halts-order-declaring-trump-s-global-10-tariff-illegal-64b1350a?eafs_enabled=false">administrative stay</a> of the CIT’s order.

U.S. trade developments.

Washington and Brussels deepen cooperation on critical minerals. On April 23, the United States and European Union (“EU”) signed a memorandum of understanding (“MOU”) <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_26_862">establishing a framework</a> to strengthen supply‑chain resilience and reduce reliance on highly concentrated global markets. Pursuant to the MOU, Washington and Brussels agreed to <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_26_862">deepen cooperation</a> across exploration, processing, refining, recycling, and recovery, supported by high environmental and labor standards. Alongside the MOU, the new <a href="https://ustr.gov/sites/default/files/files/Press/Releases/2026/U.S.-EU%20Critical%20Minerals%20Action%20Plan.pdf">U.S.–EU Action Plan For Critical Minerals Supply Chain Resilience ("Action Plan")</a> details coordinated work on reference‑price mechanisms, border‑adjusted price floors, standards‑based markets, investment‑screening alignment, and joint crisis‑response tools. The Action Plan will serve as the <a href="https://ustr.gov/about/policy-offices/press-office/press-releases/2026/april/ambassador-jamieson-greer-announces-united-states-european-union-action-plan-critical-minerals">operational vehicle</a> for aligning trade and industrial policies as both sides explore a future plurilateral agreement. &nbsp;

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U.S.–India trade talks continue. Trade negotiations between the United States and India remain “constructive” following a <a href="https://www.reuters.com/world/india/india-says-trade-talks-with-us-remain-constructive-after-washington-visit-2026-04-23/">three-day visit to Washington</a> led by Darpan Jain, senior Ministry of Commerce official for India. The <a href="https://www.financialexpress.com/india-news/india-concludes-3-day-talks-with-us-on-finalising-trade-deal-what-all-was-discussed/4217545/?utm_source=copilot.com">talks</a> focused on reducing trade barriers, promoting digital trade, and expanding cooperation in areas such as supply‑chain resilience. A U.S. delegation is <a href="https://news.bloomberglaw.com/international-trade/us-trade-delegation-likely-to-visit-india-as-pact-talks-advance">expected to travel</a> to New Delhi to continue negotiations.

President Trump threatens 25 percent tariff on cars imported from the European Union. On May 1, <a href="https://www.bbc.com/news/articles/c4g8zpylzz9o">President Trump announced</a> that the United States would increase the tariff on imported EU-origin cars from 15 percent to 25 percent as a result of the European Union “not complying with [the] full trade deal.” In <a href="https://www.bbc.com/news/articles/cp3pyk4nw3lo">a subsequent call</a> with European Commission President Ursula von der Leyen, President Trump agreed to give the European Union until July 4 to implement the U.S.-EU trade deal or face increased tariffs. President von der Leyen <a href="https://ec.europa.eu/commission/presscorner/api/files/document/print/en/read_26_1036/READ_26_1036_EN.pdf">confirmed that</a> “good progress is being made towards tariff reduction by early July.”

U.S. Department of Commerce announces tariff break for Canadian- and Mexican-origin steel and aluminum. On April 23, the U.S. Department of Commerce announced a <a href="https://www.cbc.ca/news/politics/american-offer-canadian-aluminum-steel-companies-tariff-relief-9.7176321">conditional tariff relief process</a> for Canadian and Mexican steel and aluminum producers if they commit to expanding production into the United States. The <a href="https://www.govinfo.gov/content/pkg/FR-2026-04-23/pdf/2026-07987.pdf">Federal Register notice</a> outlines the documentation process for Canadian and Mexican companies to request reduced Section 232 tariffs under Presidential Proclamation 10984 based on new production commitments to boost U.S. primary steel and aluminum capacity for automobiles, medium-and heavy-duty vehicles, or related parts.

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Chinese regulatory countermeasures against the United States and the European Union.

China blocks U.S.-based Meta Platforms’ acquisition of Manus. On April 27, China blocked Meta’s $2 billion <a href="https://www.wsj.com/world/china/china-bans-metas-acquisition-of-manus-on-national-security-grounds-71e10c3f?mod=hp_lead_pos1">acquisition</a> of artificial intelligence startup Manus, announced in December 2025, citing national security concerns tied to data handling and advanced model‑training capabilities. The decision follows a <a href="https://apnews.com/article/china-meta-manus-ai-acquisition-5f8012791f86f719a24a3ebac06d9b0a">months-long investigation</a> by the China National Development Commission Office of the Working Mechanism for Security Review of Foreign Investment.&nbsp;

China adds seven European entities to its export control “Restricted Namelist.” On April 24, China’s Ministry of Commerce (“MOFCOM”) <a href="https://www.reuters.com/world/asia-pacific/china-bans-dual-use-items-exports-7-european-entities-over-taiwan-arms-sales-2026-04-24/">announced a ban on dual-use exports</a> to seven European entities, including companies based in Belgium, Czechia, and Germany, citing the companies’ arms sales to Taiwan.&nbsp;

China’s MOFCOM directs companies not to comply with U.S. sanctions. On May 3, MOFCOM <a href="https://www.wsj.com/world/china/china-steps-up-u-s-sanctions-fight-defying-blacklisting-over-iranian-oil-e32b8427">issued a directive</a> instructing Chinese companies to ignore U.S. sanctions targeting Iranian oil, invoking for the first time its 2021 “<a href="https://english.mofcom.gov.cn/Policies/GeneralPolicies/art/2021/art_98677d0ed28b41b9adeff27b00c9d001.html">Blocking Rules</a>,” which are intended to counter application of foreign laws in China.&nbsp;

Trump Administration imposes secondary sanctions on Cuba. On May 1, President Trump issued <a href="https://www.whitehouse.gov/presidential-actions/2026/05/imposing-sanctions-on-those-responsible-for-repression-in-cuba-and-for-threats-to-united-states-national-security-and-foreign-policy/">Executive Order ("EO") 14404</a>, clearing the way for the first-ever “secondary” sanctions on non-U.S. persons that engage in certain dealings with Cuba. Specifically, the EO authorizes sanctions against the “energy, defense and related materiel, metals and mining, financial services, or security sector of the Cuban economy, or any other sector of the Cuban economy, as may be determined by the Secretary of the Treasury,” as well as persons providing material support to the Cuban government or for human rights abuses or corruption in Cuba. Later, on May 7, U.S. Secretary of State Marco Rubio <a href="https://www.state.gov/releases/office-of-the-spokesperson/2026/05/u-s-sanctions-target-cubas-military-regime-elites">announced</a> the first designations under the EO, targeting two Cuban entities and one Cuban individual. See our <a href="https://www.blankrome.com/news-and-events/trump-administration-imposes-first-ever-secondary-sanctions-on-cuba/">alert</a> for more details.

European Union adopts 20th Russia sanctions package. On April 23, the European Council <a href="https://www.consilium.europa.eu/en/press/press-releases/2026/04/23/russia-s-war-of-aggression-against-ukraine-20th-round-of-stern-eu-sanctions-hits-energy-military-industrial-complex-trade-and-financial-services-including-crypto/">announced</a> additional sanctions on the Russian economy, targeting Russia’s “shadow fleet” of oil tankers, as well as its liquified natural gas exports and other sources of revenue. In addition, the sanctions package includes various actions against third-country entities, including a transaction ban with the Indonesian port of Karimun’s oil terminal, export restrictions for certain entities in the Middle East, and the first-ever use of the EU’s anti-circumvention tool, targeting certain exports to Kyrgyzstan.

U.S. Cybersecurity &amp; Infrastructure Security Agency issues joint advisory with non-U.S. counterparts following Chinese hacking of home routers and smart devices. According to the <a href="https://www.cisa.gov/news-events/cybersecurity-advisories/aa26-113a">joint advisory</a>—issued by cyber authorities in the United States, the United Kingdom, Australia, Canada, Germany, Japan, the Netherlands, and Sweden—“China-nexus” actors are shifting tactics towards the use of compromised home routers and smart devices for cybercriminal activity. The advisory notes that while the use of these networks of compromised devices—known as “botnets”—is not new, China-linked actors “are now using them strategically, and at scale.” The joint advisory follows a <a href="https://docs.fcc.gov/public/attachments/DOC-420034A1.pdf">March decision</a> by the Federal Communications Commission (“FCC”) to ban imports of foreign-made routers, which cited the use of compromised home routers in major Chinese cyberattacks.

U.S. officials express concerns over Taiwan’s cuts to defense spending. On May 11, the Legislative Yuan, Taiwan’s Parliament, <a href="https://www.reuters.com/business/finance/us-disappointed-taiwans-smaller-defense-budget-official-says-2026-05-10/">passed</a> a $25 billion defense spending bill, only two-thirds of the funds initially sought by the Democratic Progressive Party-led government. The decision received <a href="https://www.taipeitimes.com/News/front/archives/2026/05/10/2003857057">mixed reviews</a> in Washington, with a State Department spokesperson supporting the additional funding but describing the cut from the initially proposed budget as a “concession to the Chinese Communist Party.”

Australian company Lynas Rare Earths begins excavation of rare earth minerals in Malaysia with support of $96 million deal from the Pentagon. Lynas Rare Earths (“Lynas”), one of the leading Western rare-earths producers, has begun <a href="https://www.wsj.com/business/malaysia-rare-earth-minerals-baceacb2?mod=hp_lista_pos4">excavating heavy rare earth minerals</a> in the port city of Kuantan, Malaysia. The excavation follows a March 2026 binding letter of intent between Lynas and the Pentagon, under which the<a href="https://www.reuters.com/world/asia-pacific/australias-lynas-inks-us-rare-earth-oxide-supply-deal-2026-03-15/"> Pentagon will allocate $96 million</a> to purchase Lynas’s light and heavy rare earth oxide products.

Canada moves to launch its first national sovereign wealth fund to accelerate major infrastructure projects. The “Canada <a href="https://www.cbc.ca/news/politics/sovereign-wealth-fund-carney-major-projects-9.7178238" target="_blank" rel="noreferrer noopener">strong fund</a>” introduces a new investment model that allows Canadians to contribute directly by buying into the fund. The initial endowment will serve as a starting point to <a href="https://www.wsj.com/world/americas/canada-to-launch-sovereign-wealth-fund-prime-minister-carney-says-c2ad9928?mod=Searchresults&amp;pos=1&amp;page=1" target="_blank" rel="noreferrer noopener">reduce economic reliance</a> on the United States. &nbsp;

United Arab Emirates leaves OPEC. Effective May 1, the United Arab Emirates is <a href="https://apnews.com/article/opec-united-arab-emirates-leaving-cartel-4966108c3fafacb67181152216deda14">no longer a member</a> of the Organization of the Petroleum Exporting Countries (“OPEC”), of which it had been a member since 1967.&nbsp;

U.S. expresses discontent with the World Trade Organization. Following the recent World Trade Organization (“WTO”) Ministerial Conference in Cameroon last March, the United States has declared the WTO <a href="https://subscriber.politicopro.com/article/2026/05/us-says-world-trade-organizations-multilateral-era-is-over-00909676">no longer capable</a> of executing multilateral trade agreements among its full membership. U.S. Ambassador to the WTO Joseph Barloon, described the WTO’s role in future trade negotiations to be “plurilateral” at most. Barloon’s statements follow disagreements between the United States and Brazil on extending a 28-year moratorium on imposing customs duties on electronic transmissions, viewed by many as a key roadblock to more extensive WTO reform.&nbsp;

For continuous, up-to-date information on the evolving administrative landscape, check out Blank Rome’s&nbsp;<a href="https://www.blankrome.com/special-topics/trump-administration-resource-hub/">Trump Administration Resource Hub</a>. Explore previous BR International Trade Reports&nbsp;<a href="https://www.blankrome.com/the-br-international-trade-report/">here</a>.

Trump Administration Imposes First-Ever Secondary Sanctions on Cuba

Blank Rome partners <a href="https://www.blankrome.com/people/anthony-rapa/">Anthony Rapa</a> and <a href="https://www.blankrome.com/people/kenneth-j-nunnenkamp/">Kenneth J. Nunnenkamp</a> authored this alert discussing the Trump Administration’s recently introduced “secondary” sanctions on Cuba, allowing the U.S. to target non‑U.S. companies and individuals engaged in certain Cuba-related activities and significantly expanding global compliance risks beyond the longstanding embargo against Cuba.

Anthony Rapa Joins Schwab Network’s Trading 360

Blank Rome partner and International Trade co-chair <a href="https://www.blankrome.com/people/anthony-rapa/">Anthony Rapa</a> recently joined host Marley Kayden on Schwab Network’s Trading 360 to discuss how U.S.-Iran tensions continue to shape crude oil and equity markets.

Trade Enforcement Update – May 2026

Blank Rome partners <a href="https://www.blankrome.com/people/anthony-rapa/">Anthony Rapa</a>, <a href="https://www.blankrome.com/people/jennifer-a-short/">Jennifer A. Short</a>, <a href="https://www.blankrome.com/people/bradley-l-henry/">Bradley L. Henry</a>, and associates <a href="https://www.blankrome.com/people/michael-j-schmandt/">Michael J. Schmandt</a> and <a href="https://www.blankrome.com/people/layla-s-najjar/">Layla S. Najjar</a> authored this Global Trade Law Journal article discussing how federal agencies are intensifying trade and sanctions enforcement, with the Trump administration prioritizing coordinated investigations and launching the Trade Fraud Task Force in August 2025, fueling a growing wave of trade‑related enforcement actions expected to accelerate further.

Tariff Refunds in Sight as Importers Start Signing Up

Blank Rome partner <a href="https://www.blankrome.com/people/eric-s-parnes/">Eric S. Parnes</a> was featured in this The Hill article discussing how importers are beginning to submit claims through a newly launched government system to recover up to $166 billion in invalidated tariffs, though the Trump administration cautions refunds may still be weeks away.

Export Control Questions for AI / Machine Learning Companies: When Controls Arise and How to Mitigate Risk

Blank Rome partner and International Trade co-chair <a href="https://www.blankrome.com/people/anthony-rapa">Anthony Rapa</a> will be hosting a Practising Law Institute live webinar, being held on Wednesday, June 10, 2026, from 1:00 p.m. to 2:00 p.m. EST.

To learn more about other Recent Developments or Upcoming Events, click <a href="https://www.blankrome.com/services-and-industries/international-trade/#news">here</a>.

To read more about Blank Rome's International Trade practice, please visit our <a href="https://www.blankrome.com/services-and-industries/international-trade/">website</a>.

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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.

The BR International Trade Report: May 2026

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The BR International Trade Report: May 2026

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