Regulatory Playbook

Trending Issues

U.S. Tariffs on Non-USMCA-Compliant Products Take Effect; Increased Tariff Rate on China Imposed
03.10.2025

Between March 4, 2025, and March 6, 2025, U.S. trade policy in North America changed course multiple times as the Trump administration initially implemented previously paused tariffs on imports from Canada and Mexico, and two days later, suspended tariffs on all Canadian and Mexican imports that meet the rules of origin for preferential tariff treatment of the United States-Mexico-Canada Agreement (USMCA). The Trump administration also increased across-the-board tariffs on imports from China to 20%, which remain in place. These measures, introduced through a novel use of the International Emergency Economic Powers Act (IEEPA), come after an initial 30-day delay in imposing tariffs on the North American trading partners on February 3, 2025.

Taxmageddon: What to Expect under Trump 2.0 and a GOP-Led Congress
03.10.2025

With the Trump administration and a Republican-controlled Congress now in office, significant changes to the U.S. economic landscape and tax policy are expected. Indeed, legislation to change tax policy and to implement accompanying budget cuts to “pay for” potential decreased federal tax revenues is the signature legislative agenda item for the Washington Republicans during the first year of President Trump’s second term. The key question surrounding the legislation is how comprehensive a tax plan Congress can pass given the small majorities held by Republicans in the House (only 2-3 votes, pending expected retirements) and Senate (4 votes), the procedures by which the legislation advances, the competing legislative priorities, and the already large federal budget deficit.

U.S. Bankruptcy Court Agrees to Enforce English Three-Step, with Third-Party Releases, Used by Mexican Auto Financer
03.10.2025

On February 24, 2025, U.S. Bankruptcy Judge Michael E. Wiles granted “recognition” of an English insolvency proceeding and enforced an order approving an English scheme of arrangement for a new shell entity created in England by its Mexican parent solely to effectuate an English restructuring that provides consensual and non-consensual third-party releases of the Mexican parent company, even though the new entity had little connection with England. In re Mega NewCo Limited, No. 24-12031 (MEW), 2025 WL 601463 (Bankr. S.D.N.Y. Feb. 24, 2025) (“in light of the support of all of the affected parties and their overwhelming consent to the English Scheme Proceeding and the approval of the Scheme of Arrangement, and the other factors that I have cited, I see no cause in this particular case to look past the form of the transactions or to pursue theoretical issues that no affected party wishes to pursue”).

Council on Environmental Quality Rescinds NEPA Regulations
03.07.2025

As was widely anticipated, the Council on Environmental Quality (CEQ) recently rescinded its National Environmental Policy Act (NEPA) implementing regulations, eliminating the uniform framework that has governed NEPA compliance for decades. CEQ’s Interim Final Rule, published on February 25, 2025, removes 40 C.F.R. Parts 1500–1508 from the Code of Federal Regulations, dismantling longstanding procedural requirements for federal environmental reviews.

The Battle of the Shipyards: USTR Proposals Would Require U.S.-Flagged and U.S.-Built Vessels, Impose Fees on Operators of Chinese Vessels
03.07.2025

On February 21, 2025, the Office of the U.S. Trade Representative (USTR) announced a proposal to: (i) require that exporters of U.S. goods use U.S.-flagged and U.S.-built vessels for an increasing percentage of their exports; and (ii) impose service fees on Chinese vessel operators and other operators that use or contract for the use of Chinese-built vessels. If finalized, this proposal could have significant impacts on the cost of transporting and exporting U.S. goods and impact the trade flows of many commodities and other products. USTR intends to finalize its proposal on or before April 17, 2025. The deadline for submitting written comments is March 24, 2025, the date of USTR’s scheduled hearing on the proposed relief. We highly encourage affected interested parties to submit comments on the proposal.

Second Circuit Affirms Priority Payment of Broker Fees Included in Aircraft Leases Utilizing the “Billing-Date Approach” Under Bankruptcy Code § 365(d)(5)
02.26.2025

Airlines will always need access to new aircraft to expand and replace their fleets. When an airline utilizes an intermediary, such as a broker, it must pay a commission to lease or purchase aircraft. Depending on the number of aircraft obtained, commissions may be very expensive, necessitating payments over time. But what happens if the airline files for bankruptcy before paying out the commissions? If not properly structured to be included as part of the lease payments, the broker may be left with an unsecured claim which may be paid with pennies on the dollar. However, if the fees are included as part of the rent under the lease, they may qualify as priority claims, until the lease is rejected.

Challenging Trump 2.0 En Masse Contract Terminations
02.24.2025

In recent weeks, the second Trump administration has begun en masse terminations of federal contracts for the government’s convenience-as-a-budget-cutting tactic. Contractors with the U.S. Agency for International Development have been most affected by this tactic, where the vast majority of the agency’s contracts have been terminated.

Federal Court Issues Preliminary Injunction against Anti-DEI Executive Orders
02.24.2025

On February 21, 2025, a federal court in Baltimore, Md., issued a nationwide preliminary injunction order against aspects of two Executive Orders that targeted diversity, equity, and inclusion (DEI) principles and programs in the private sector (the Anti-DEI EOs). The ruling came in a lawsuit filed by lead plaintiff the National Coalition of Diversity Officers in Higher Education (NADOHE). As explained in this Pillsbury client alert, the Anti-DEI EOs signed by President Trump on January 20 and 21, 2025, include directions to federal agencies to:

1. terminate all “equity-related” grants and contracts (the Termination Provision),
2. require all federal grant recipients and contractors to certify that they do not “promote DEI” programs that violate antidiscrimination laws, with potential False Claims Act liability for untrue certifications (the Certification Provision), and
3. identify targets for civil investigations into “illegal DEI” in order to deter voluntary private sector DEI programs (the Enforcement Threat Provision).

California v. Trump 2.0: Navigating Policy Collisions and Business Opportunities
02.13.2025

As President Trump embarks on his second term and California begins the second year of an already active legislative cycle, a high-stakes battle is brewing. The Trump administration’s aggressive deregulatory agenda is poised to clash with California’s stringent regulations in critical areas such as energy, environmental standards, taxation and artificial intelligence (AI) governance. This evolving landscape is already having impacts beyond the borders of California and presents both risks and opportunities for businesses operating across these dual regulatory frameworks.

California Governor Releases 2025 Budget Proposal to Move Banks and Financial Corporations to Single-Sales-Factor Apportionment
02.13.2025
On January 10, 2025, California Governor Gavin Newsom released his January Budget Proposal for the 2025 – 2026 fiscal year. Notably, Governor Newsom’s budget would increase tax revenue by requiring banks and financial corporations to move from an equally weighted three-factor formula, comprising property, payroll and sales factors, to a single-sales-factor formula for purposes of apportioning income to the state. Agricultural and extractive businesses would continue to use the three-factor formula. The proposed change would take effect immediately, beginning with tax year 2025. A copy of the trailer bill is available here.

Reshaped Priorities: Navigating Changes to FCPA and FARA Enforcement
02.13.2025
On February 10, 2025, President Donald Trump signed an Executive Order directing the Department of Justice (DOJ) to pause enforcement of the U.S. Foreign Corrupt Practices Act (FCPA), citing concerns over the competitive disadvantage that it imposes on U.S. businesses. Just days earlier, Attorney General Pam Bondi issued a memorandum signaling a narrowing of DOJ enforcement priorities with respect to the FCPA and Foreign Agents Registration Act (FARA). This alert provides an overview of the current state of FCPA and FARA enforcement, discussing the compliance implications of new DOJ policy for companies engaged in cross-border trade.

The Trump Administration Reinstates and Expands Section 232 Tariffs on Steel and Aluminum
02.12.2025
On February 10, 2025, President Trump issued two Presidential Proclamations reimposing and expanding tariffs on all steel and aluminum imports into the United States pursuant to Section 232 of the Trade Adjustment Act of 1962. These measures effectively supersede prior alternative arrangements, including tariff-rate quotas (TRQs) negotiated with key U.S. trading partners such as the European Union (EU), the United Kingdom (UK), Japan and others, while also revoking country-specific exemptions previously granted to Canada and Mexico. The Proclamations represent a substantial escalation of U.S. trade policy in the metals sector and reaffirm the national security rationale that underpinned the original Section 232 tariffs imposed in 2018.

White House Seeks Public Input on AI Action Plan: What Stakeholders Need to Know
02.12.2025
​On January 20, 2025, President Trump revoked Executive Order (EO) 14110, entitled “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (AI),” which was issued by former President Biden and aimed at establishing a regulatory framework for AI oversight. On January 23, 2025, President Trump issued EO 14179, entitled “Removing Barriers to American Leadership in Artificial Intelligence,” that proposed the creation of an AI Action Plan.

Trump 2.0: The Future of the EU-U.S. Data Protection Framework and Trans-Atlantic Data Transfers
02.12.2025
The issue of transfers between the European Union or United Kingdom and the United States has long been fraught with turbulence. From the invalidation of Safe Harbor in 2015 to the downfall of Privacy Shield in 2020, each mechanism designed to ease the compliance burden of transatlantic data sharing has faced scrutiny culminating, more often than not, in legal challenges before the Court of Justice of the European Union (CJEU).

EPA Finalizes New Rule to Reduce and Reclaim Hydrofluorocarbons
02.11.2025
Prior to the Biden administration leaving office, EPA finalized another rule in its continued push to phase down the use of hydrofluorocarbons (HFCs) by issuing a final rule on October 11, 2024, to establish the HFC Emissions Reduction and Reclamation (ER&R) program. EPA’s new rule, discussed in more detail below, will significantly impact industries that rely heavily on commercial-scale refrigeration systems. Further, companies with facilities that rely on older systems may require more frequent equipment repair or replacement to comply with the rule.

California’s AI Laws Are Here—Is Your Business Ready?
02.07.2025
January 1, 2025, marked the start of a series of significant AI laws going into effect in California. California’s 18 new AI laws represent a significant step toward regulating this space, establishing requirements regarding deepfake technology, AI transparency, data privacy and use of AI in the health care arena. These laws reinforce the state’s desire to be a pioneer in this space. This article provides a detailed look at the enacted legislation, addresses compliance timelines and serves as a guide for businesses as they navigate compliance with California’s evolving AI landscape.

New DOJ–FTC Antitrust Guidelines for Business Activities Affecting Workers: Key Changes and Practical Takeaways
02.07.2025
On January 16, 2025, four days before the Trump administration took office, the Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) jointly issued the Antitrust Guidelines for Business Activities Affecting Workers (the “2025 Guidelines”). These guidelines replace the prior October 2016 version, Antitrust Guidance for Human Resource Professionals, jointly issued by both antitrust enforcement agencies, in the final months of the Obama administration. The 2025 Guidelines update how the federal agencies assess business practices and agreements affecting workers under federal antitrust laws.

Trump 2.0: A New Era for the Regulation of Cryptocurrency and Digital Assets
02.06.2025
President Trump campaigned on the promise to make the United States the “crypto capital” of the world. In his first days in office, he took steps to advance that goal, including by signing an executive order designed to support the U.S. crypto industry and appointing senior officials who support crypto. President Trump has also begun to roll back certain aspects of the Biden administration’s crypto regulatory and enforcement policies and indicated that his administration will attempt to implement a clear regulatory framework for the crypto industry.

Navigating Stop-Work and Suspension Orders Under Trump 2.0
02.06.2025
In its first two weeks, the new Trump administration has introduced a flurry of significant changes to the federal landscape. Many agencies have taken immediate action to enforce new executive orders by issuing stop-work orders to federal contracts under Federal Acquisition Regulation (FAR) 52.242-15. In fact, all USAID contractors, except those that have received limited waivers, have received stop-work orders as a result of Executive Order 14169, Reevaluating and Realigning Untied States Foreign Aid. Grant recipients are also facing suspension orders pursuant to the grant regulations at 2 C.F.R. § 200.343. Although the Office of Management and Budget (OMB) has rescinded the OMB memorandum directing agencies to implement the stop-work and suspension order, and federal courts have enjoined the government’s “pause” in payments to contractors and grant recipients, agencies are nonetheless continuing to direct contractors and grant recipients to stop work.

DOGE Puts GSA Leases in the Doghouse
02.04.2025
President Trump has tasked the Department of Government Efficiency (DOGE) with “making changes to the federal bureaucracy” to “slash excess regulations, cut wasteful expenditures, and restructure federal agencies.” In the first week of the Trump Administration, DOGE took aim at federal leases administered by the General Services Administration (GSA). The Administration announced that two leases had been canceled and that its initial focus would be on “unoccupied buildings.” In a second, related announcement, the Administration boasted that GSA had terminated “three leases of mostly empty office space, with tenants relocating to nearby buildings in the GSA portfolio.”

Federal Funding in Flux: Policy Shifts and Uncertain Terrain
02.04.2025
In his first week in office, President Trump issued a record number of executive orders (EOs) and key executive memorandums, setting new federal policies and reinforcing his administration’s priorities. Many early actions target federal funding, temporarily suspending disbursements for programs that do not align with Administration goals.

Navigating DeepSeek’s Challenge: President Trump’s Stargate Initiative and Preparing Businesses for AI Leadership
01.31.2025
President Trump’s first week in office prioritized artificial intelligence (AI) innovation by reversing what his administration viewed as restrictive Biden-era policies. The rescission of Executive Order 14110, which emphasized governance and public trust in AI development, signaled a pivot to deregulation and competitive advancement. A new Executive Order, “Removing Barriers to American Leadership in Artificial Intelligence,” focuses on:

• Streamlining Regulations: Rolling back policies deemed “burdensome” to encourage private sector innovation.
• Mandating a National AI Action Plan: Federal agencies are tasked with aligning policies to promote U.S. dominance in AI within 180 days.
• Reviewing AI Governance: Revisiting Biden-era frameworks to ensure they align with economic competitiveness and national security priorities.

IRS Eases Form 1095-C Burden for Employers
01.31.2025

On December 23, 2024, President Biden signed into law the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act, which together reduce the burden on employers to meet certain requirements under the Affordable Care Act (ACA). These laws specifically impact employers that are required to furnish IRS Forms 1095-B or 1095-C (collectively, “Forms 1095”) to their employees.

IRS Proposes New Rules to Implement the Expanded $1 Million Limit on Deductible Pay for Publicly Held Corporations
01.31.2025

Background
Section 162(m) of the Internal Revenue Code of 1986, as amended (Section 162(m)), disallows deduction by any publicly held corporation for applicable employee remuneration that is otherwise deductible with respect to any covered employee to the extent that such remuneration for the taxable year exceeds $1 million. The $1 million cap is not indexed for inflation and the limit applies to all publicly held corporations regardless of the corporation’s status as an “emerging growth company” or “smaller reporting company” for purposes of Securities and Exchange Commission (SEC) executive compensation disclosure rules.

Trump 2.0: AI and Data Centers in a Time of Legal and Technological Disruption
01.30.2025

In just over a week, the second Trump administration has already announced initiatives that could lead to major shifts in the legal landscape for artificial intelligence (AI) and associated energy sources. What is more, the global picture for the technology, economics and deployment of AI and associated data centers is undergoing changes beyond the upheaval in legal norms. Below is a summary of the current state of play and actions to consider in the days to come.

Trump 2.0: National Energy Emergency Targets Fossil Fuel, Uranium and Critical Minerals Expansion and Infrastructure Overhaul
01.29.2025

On January 20, 2025, President Trump issued the “Declaring a National Energy Emergency” executive order (Order) under the National Emergency Act (NEA)—the first national emergency specifically focused on energy ever declared in U.S. history. Though the Order is not an emergency for all forms of energy, it authorizes the expansion of domestic fossil fuel exploration and extraction, while directing federal agencies to streamline regulatory processes and accelerate energy infrastructure projects.

White House Introduces Cyber Trust Mark Program
01.29.2025

Cybersecurity Trust Mark Program: Building Consumer Confidence in Internet of Things (IoT) Security
On January 7, 2025, the White House announced the finalization of its voluntary cybersecurity labeling program for wireless interconnected smart products administered by the Federal Communications Commission (FCC). The White House announcement comes after an 18-month public notice and comment period. The Cyber Trust Mark program seeks to provide consumers with a simple label to assess whether their Internet of Things (IoT) wireless connected devices in their home are cybersecure.