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

Export control developments:

  • BIS extends suspension of the Affiliates Rule. On November 9, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) extended its stay of the “Affiliates Rule” from November 10, 2026, through January 10, 2027. The Affiliates Rule, which BIS issued in September 2025, would apply export control restrictions to non-U.S. entities that are 50 percent or more owned by parties on the BIS Entity List, the BIS Military End-User List, and the U.S. Department of the Treasury’s List of Specially Designated Nationals and Blocked Persons, which could restrict thousands of Chinese companies if implemented. See our prior reporting on the Affiliates Rule here and here.
  • Trump Administration reportedly limits broadening License Exception IEC program. BIS reportedly is freezing its License Exception Implemented Export Controls (“IEC”) program, a Biden-era program that eased licensing restrictions on certain advanced and emerging technologies for countries that implemented export controls equivalent to U.S. controls. Senior officials reportedly have rejected requests from South Korea and Vietnam to join the program, which currently includes Australia, Canada, Denmark, Finland, France, Norway, the Netherlands, New Zealand, and Slovenia.
  • Taiwan considers tightening export controls on advanced AI chips. Taiwan’s Legislative Yuan held a hearing on a proposal that would ban exports of certain integrated circuits, wafer materials, and chipmaking equipment to China. Proponents argue that the law is necessary because certain exports to China are illegal under U.S. law, but not Taiwanese law. Violators would face up to 10 years in prison and fines of NT$5 million to NT$10 million (approximately USD $155,000 to $310,000).

Iran war updates:

  • U.S.-Iran talks advance. 
    • The U.S.-Iran conflict has entered a renewed period of negotiations, following reported U.S. “defensive strikes” against Iranian targets near the Strait of Hormuz last week.  President Donald Trump has said renewed large-scale U.S. strikes are “highly unlikely” if negotiations progress, while warning that Washington could again target Iranian infrastructure. Secretary of State Marco Rubio echoed these comments, stating that there is “no need for major combat operations” given the success of the U.S. economic pressure campaign against Iran.Diplomatic efforts intensified this week as Qatari Prime Minister Sheikh Mohammed bin Abdulrahem Al Thani traveled to Washington to meet with President Trump and Vice President J.D. Vance.  
    • Meanwhile, Washington continues to pressure Tehran through its naval blockade and the newly established Task Force Iron Gate, aimed at disrupting the movement of weapons, dual-use technologies, sanctioned materials, and illicit revenue across Iran’s land borders and the Caspian Sea.
  • OFAC continues to target Iran’s shadow fleet.
    • On November 4, the U.S Department of Treasury’s (“Treasury”) Office of Foreign Assets Control (“OFAC”) designated an India-based maritime fraud network for allegedly supporting Iran’s shadow fleet by providing false vessel flags and maritime certifications used to facilitate the transport of Iranian petroleum.
    • Furthermore,OFAC issued an alert highlighting the shadow fleet’s increasing use of fraudulent vessel registries and false flags, cautioning maritime-sector participants to conduct enhanced due diligence when vessels exhibit false-flag indicators.

Customs / tariff updates:

  • CBP introduces heightened requirements for foreign importers of record. On November 6, U.S. Customs and Border Protection (“CBP”) issued an interim final rule imposing requirements on foreign importers of record (“IORs”) when entering merchandise into the United States, with corresponding responsibilities for customs brokers and consequences for foreign importers of record and brokers for noncompliance. This update is consistent with the President’s June 2026 Executive Order on Strengthening Customs Enforcement. Effective January 5, 2027, the rule significantly changes when foreign entities may act as IORs and places new verification and compliance obligations on importers and customs brokers.
    • New IOR classifications: This rule establishes a new 19 C.F.R. Part 110, which establishes stringent criteria for determining whether an importer qualifies as a U.S. or foreign IOR.
    • CTPAT requirements:  Foreign IORs must either be validated under the Customs Trade Partnership Against Terrorism (“CTPAT”) program or use a CTPAT-validated licensed customs broker to make entry.
    • New declarations and verification requirements: Importers or their brokers must declare U.S-IOR status on entry documentation, subject to CBP verification.
    • Heightened obligations for customs brokers: The rule imposes additional compliance and verification responsibilities on customs brokers representing foreign importers.
  • Trump Administration revises Section 338 tariffs on Canadian goods. On October 23, President Trump modified the 50 percent tariffs on certain Canadian imports imposed under Section 338 of the Tariff Act of 1930. Effective October 30, the changes remove tariffs on certain manufactured products and equipment to Maine industries. President Trump stated the U.S.-Canada tariff dispute could be resolved “soon,” and Prime Minister Mark Carney remarked that recent negotiations made “progress” towards an agreement. A challenge to the President’s Section 338 tariffs is currently before the Court of International Trade, and a hearing has been scheduled for January.

Treasury proposes expanded outbound investment restrictions under the COINS Act.

  • On October 22, Treasury issued proposed regulations implementing the Comprehensive Outbound Investment National Security Act of 2025 (the “COINS Act”), which would expand Treasury’s existing Outbound Investment Security Program regarding U.S. investments in certain sensitive technologies.
  • The proposal would add Cuba, Iran, North Korea, Russia, and Venezuela (under the Maduro regime) as countries of concern alongside China, and would extend coverage to high-performance computing, hypersonic systems, and biotechnology, as well as additional semiconductor and quantum technologies.
  • Notably, it would prohibit investments in entities developing any “super intelligence” (“SI”) system—the proposal’s replacement term for AI—eliminating the “notification” tier for certain lower-performing SI / AI.
  • The proposal retains exceptions for publicly traded securities and limited-partner investments of $2 million or less, and adds new exceptions for de minimis transactions of $50,000 or less (notification only), bank lending, and underwriting, along with a process for seeking “non-binding feedback” from Treasury.
  • Comments are due December 7, 2026.
  • See the proposed rule in the Federal Register here and Treasury’s fact sheet here. For background on the COINS Act, see our prior coverage here.

President Trump waives Russia sanctions. On October 16, President Trump signed Executive Order 14436, invoking Section 115 of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the “Act”) to waive the Act’s sanctions, restrictions, and duties. The waiver effectively suspends measures Congress enacted with bipartisan support to target Russian revenue streams and foreign purchasers of Russian oil and gas.  

U.S. and France split over AI safety framework. France’s push for G7 coordination on advanced AI safety failed to secure U.S. support, with the White House criticizing a proposed working group for frontier AI testing and risk-sharing as creating “unnecessary bureaucracy.” France, which holds the rotating G7 presidency for 2026, plans to continue pursuing coordination among European partners and has proposed resuming talks in December.

Trade and security deals:

  • Canada and Türkiye launch strategic partnership on trade and investment. On October 22, Canadian Prime Minister Mark Carney and Turkish President Recep Erdogan agreed to pursue a Canada-Türkiye Free Trade Agreement and to expand bilateral investment in energy, defense production, AI, critical minerals, and liquefied natural gas. The countries aim to increase annual bilateral trade from $3 billion to $5 billion initially, and their export credit agencies are also expected to cooperate on investment initiatives in Africa, the Middle East, and Central Asia.  
  • Canada to join EU supercomputing network. EU Commission president Ursula von der Leyen announced plans to give Canadian companies access to European computing infrastructure run by the EuroHPC Joint Undertaking to develop AI models. The supercomputing network consists of supercomputers, AI factories, and quantum computers, and is poised to invest $30 billion in AI data centers. Non-EU countries currently participating in the network include Norway, Switzerland, the United Kingdon, Israel, and Türkiye.
  • Canada and EU advance “associate membership” framework. On October 30, Canada and the EU agreed to work toward a new form of “associate membership,” with a June 2027 deadline to define its scope. The arrangement may deepen Canadian access to EU programs and markets, including potential treatment as a “Made in Europe” partner for public procurement.
  • China and Switzerland expand bilateral trade agreement. On October 30, China and Switzerland signed an upgraded trade agreement providing duty-free access to China for 99.8 percent of Swiss exports, compared with half previously. The agreement does not provide additional tariff benefits for Chinese industrial goods entering Switzerland.

China warns of countermeasures against EU trade restrictions. On October 29, China’s Ministry of Commerce stated it would take “all necessary measures” to protect Chinese interests and companies if the European Union imposes what China considers discriminatory restrictions on Chinese products. The warning follows reports that the European Union is considering expanding import restrictions beyond hybrid vehicles to other sectors, including chemicals.

Global elections:

  • Democrats take Congress in midterm sweep. The U.S. midterm elections delivered a sweeping victory for the Democratic Party, with voters identifying the economy and the Iran war as top concerns. Democrats secured control of the U.S. Senate, flipping seats in Iowa, Kansas, Maine, North Carolina, Ohio, South Carolina, and Texas, and maintaining seats in Georgia, Michigan, Minnesota, and New Hampshire, with the Alaska and Mississippi races too close to call as of this time. In the U.S. House of Representatives, Democrats gained over 40 seats. 
  • Lula de Silva wins Brazilian presidential election. Brazilian voters reelected President Luiz Inácio Lula da Silva in the October 25 runoff, with 51.8 percent of the vote against Flavio Bolsonaro, son of former President Jair Bolsonaro. President Lula da Silva’s win contrasts with the growing shift towards Washington in recent Latin American elections. Flavio Bolsonaro and his family have since arrived in the United States, fearing arrest in Brazil based on allegations of corruption and money laundering.  
  • Israeli elections produce no clear winner. Israel’s October 27 election produced no clear governing majority, with Prime Minister Benjamin Netanyahu’s bloc securing 53 seats in the 120-member Knesset, Gadi Eisenkot’s opposition winning 48, and Arab-led parties holding 19. On November 8, Israeli President Isaac Herzog granted Eisenkot the first chance to form Israel’s next government.

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.

Upcoming Events

Innovation Shaping Tomorrow: Navigating the Legal Landscape

Blank Rome partners Anthony Rapa and Sharon R. Klein will be attending a conference presented by the IBA Intellectual Property, Communications and Technology (“IPCT”) Section from Wednesday, November 11 to Friday, November 13, 2026, at the Westin Josun in Seoul, South Korea. The IPCT is a global legal forum for lawyers specializing in IP, digital markets, media, and technology policy.

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