Background

For more information on pursuing trade policy interests through the legislative process, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.

De minimis. A wide-ranging domestic policy bill that could be approved by the Senate this week includes provisions that would (1) terminate the $800 de minimis exception for commercial shipments from all countries as of July 1, 2027, and (2) impose a penalty on those who use the de minimis exception before that date to import goods in violation of any other U.S. law ($5,000 for the first violation and $10,000 for each subsequent violation). The House of Representatives approved a similar measure earlier this year.

Tariffs. The Drones for America Act (S. 2168, introduced June 25 by Sen. Scott, R-Fla.) would (1) implement bans on Chinese-manufactured drone systems by Jan. 1, 2028, and Chinese-manufactured drone components by Jan. 1, 2031, and (2) implement a gradually-increasing tariff on these items until the full bans are in effect. Tariff revenue would fund a grant program to support the procurement and development of U.S.-manufactured drones and components for first responders, law enforcement, farmers, ranchers, and others.

The Democratic Women’s Caucus sent a letter to Treasury Secretary Scott Bessent recently expressing concern about “the disproportionate financial harm that the Trump administration’s tariff policies have on women” and urging Treasury to analyze the tariff system’s impact on women and “work to address these existing financial inequities immediately.”

Trade agreements. Sen. Cantwell, D-Wash., has announced her intent to introduce legislation authorizing the White House to pursue negotiation of a trade agreement with the Middle East. Cantwell said such an agreement would be focused on information communication technology and would build on legislation introduced 22 years ago “to create a Middle East trade preference program in support of the U.S.-Middle East free trade area.” Partner countries would have to coordinate strong export controls, normalize diplomatic relations with Israel, join in efforts to support nuclear nonproliferation, and join the Abraham Accords.

Customs. The Combatting International Drug Trafficking and Human Smuggling Partnership Act of 2025 (H.R. 4071, introduced June 23 by Rep. Guest, R-Miss.) would enable authorized U.S. Customs and Border Protection officers and agents to provide support to foreign governments within their countries with respect to the monitoring, locating, tracking, and deterrence of illegal drugs to the U.S., the illicit smuggling of persons and goods into the U.S., terrorist threats to the U.S., and other threats to U.S. security or economy. The governments of the U.S. and the foreign country would first have to enter into an arrangement permitting such support.

Imports. Five lawmakers wrote to President Trump June 26 raising concerns about reports that his administration is negotiating a deal to replace the 50 percent tariffs on certain steel imports from Mexico with a tariff-rate quota that would allow a certain volume of such goods to enter the U.S. duty-free. “Most concerningly,” the letter said, “this quota would be higher than a similar agreement negotiated during your first administration, despite the fact that steel imports from Mexico continued to surge even after that agreement.”

Exports. The AUKUS Reform for Military Optimization and Review Act (H.R. 4233, introduced June 27 by Rep. Kim, R-Calif.) would modify provisions relating to defense trade and cooperation among Australia, the United Kingdom, and the U.S. Specific changes would include (1) providing an expedited review process for licenses for reexports, retransfers, temporary imports, and brokering activities regarding defense items and services, (2) requiring the president to provide an annual report to Congress on the expedited license review process, including the number of licenses issued under that process, (3) exempting AUKUS-related exports or transfers of defense articles and services from the congressional notification process, and (4) requiring the State Department to annually review the Excluded Technology List, which specifies defense articles and services excluded from the license-free AUKUS exemption.

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