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U.S. and Virginia Trade Policy Updates
October 7, 2026
VEDP’s quarterly trade policy updates provide a snapshot of the latest trade and customs developments. This edition highlights the Administration’s expanded use of tariff authorities, including new Section 301 forced labor tariffs affecting 86 countries, additional tariffs on Brazil, Section 338 measures targeting Canada, and Section 232 actions covering drones and polysilicon products. It also covers import restrictions on quartz surface products and bulk-power system equipment, temporary tariff relief for beef, extensions of the AGOA and Haiti trade-preference programs, reciprocal U.S.-China product lists for potential tariff reductions, and a new trade agreement with Jordan. In addition, it provides updates on export control changes, heightened customs and supply chain enforcement, the expansion of forced labor import restrictions, IEEPA tariff refunds, and a court ruling upholding the elimination of the de minimis exemption—plus a special deep dive on new presidential authority to impose tariffs on Russia and countries purchasing Russian energy.
Trade Policy Updates
During the third quarter of 2026, U.S. trade policy was dominated by the Administration's increasing use of its tariff authorities. The Administration replaced the temporary Section 122 tariffs with new Section 301 forced labor tariffs affecting 86 countries, imposed additional Section 301 tariffs on imports from Brazil, implemented new Section 338 tariffs and a ban on certain imports from Canada, and announced Section 232 actions targeting drones and polysilicon products. Additional developments included new import restrictions on quartz surface products and certain bulk-power system equipment, temporary duty relief for imported beef, the extension of AGOA and Haiti trade preference programs, the release of reciprocal product lists under the U.S.-China Board of Trade framework for potential future tariff reductions, and a new trade agreement with Jordan.
Section 301 Forced Labor Tariffs Imposed on 86 Countries
Effective July 24, the Trump Administration imposed new Section 301 tariffs of 10 percent or 12.5 percent on imports from 86 countries following a U.S. Trade Representative determination that those countries have failed to impose or effectively enforce prohibitions on imports made with forced labor. At the same time, the temporary 10 percent Section 122 tariff on imports from all countries expired. While the new tariffs apply broadly, USTR has exempted numerous products and categories of goods from the measure. The tariffs are also being challenged before the Court of International Trade. Virginia companies should monitor this case to determine if they may be entitled to refunds sometime in the future.
The affected countries account for more than 99 percent of Virginia's goods imports. For more information on country-specific tariff rates and product coverage, click here.
Section 301 Tariffs Imposed on Imports from Brazil
Effective July 22, an additional 25 percent Section 301 tariff took effect on most imports from Brazil, following a U.S. Trade Representative investigation into various Brazilian trade practices. The new tariff is separate from, and in addition to, the 12.5 percent Section 301 forced labor tariff imposed on imports from Brazil and the normal tariff rates.
Virginia imported more than $340 million in goods from Brazil through July 2026. For more information, click here.
Section 338 Tariffs Imposed on Imports from Canada
Effective August 22, the U.S. imposed an additional 50 percent tariff under Section 338 of the Tariff Act of 1930 against $20 billion worth of imports from Canada. The action was later modified effective September 15 to add and remove certain products and effective September 29 a modified list of products became subject to a ban. Unlike previous additional tariffs, the Section 338 tariff will apply to all covered goods regardless of whether they are originating under the U.S.-Mexico-Canada Agreement and will also stack on top of any other applicable duties.
For more information, click here.
Section 232 Tariffs Imposed on Drone Imports
President Trump has issued a proclamation imposing Section 232 tariffs on imports of unmanned aircraft systems (drones) and related components, with rates ranging from 10 percent to 100 percent depending on the product and country of origin. The tariffs went into effect on September 3, though certain drone components will not be subject to the new duties until February 9, 2027.
For more information, click here.
Section 232 Tariffs, Minimum Import Prices Imposed on Polysilicon Products
President Trump has issued a proclamation that, effective December 4, will establish minimum import prices for imports of polysilicon, polysilicon ingots and wafers, solar cells, and solar modules, while also imposing an additional 15 percent tariff on specified downstream polysilicon derivative products. The measure includes new compliance requirements for importers and tariff relief for companies with approved plans to expand U.S. polysilicon production. The Bureau of Industry and Security later issued a temporary final rule designed to prevent companies from stockpiling polysilicon or its derivatives before import restrictions on those items take effect December 4.
For more information on the proclamation, click here. For more information on the temporary final rule, click here.
No Section 232 Tariffs on Aircraft and Engines as U.S. Pursues Negotiations
President Trump issued a proclamation on July 9 declining to impose Section 232 tariffs on imports of commercial aircraft, jet engines, and related parts, despite a Commerce Department finding that such imports threaten to impair U.S. national security. Instead, the administration will pursue negotiations with trading partners over the next 180 days, though tariffs or other import restrictions could still be imposed if those efforts prove unsuccessful.
Import Restrictions Imposed on Quartz Surface Products
President Trump has issued a proclamation imposing a four-year tariff-rate quota (TRQ) on imports of quartz surface products effective August 15, following a Section 201 determination that increased imports are causing serious injury to the domestic industry. The measure establishes in-quota tariffs beginning at 25 percent and above-quota tariffs beginning at 50 percent, with rates gradually declining over the four-year period, while exempting imports from certain free trade agreement partners and other eligible countries.
For more information, click here.
Electric System Equipment Imports from Some Countries Prohibited
President Trump has issued an executive order, effective August 26, prohibiting the importation of certain bulk-power system equipment and related components from covered foreign countries subject to U.S. arms embargoes or certain sanctions, as well as from persons or entities owned by, controlled by, or subject to the jurisdiction of those countries. The order also authorizes restrictions on the continued use, operation, maintenance, servicing, or updating of previously imported equipment from covered sources.
For more information, click here.
Import Duties on Beef Lowered for Three Months
President Trump has issued a proclamation temporarily lowering import duties on certain lean beef imports by expanding the U.S. beef tariff-rate quota by 300,000 metric tons. The additional quota will be made available in three monthly tranches of 100,000 metric tons each from September through November.
For more information, click here.
AGOA and Haiti HOPE/HELP Extended Through 2028
On September 2, President Trump signed into law a government funding bill that includes a two-year extension of the African Growth and Opportunity Act (AGOA) and Haiti's HOPE/HELP trade-preference programs. Both programs had lapsed last fall before being temporarily restored through the end of 2026, and this new extension authorizes them through December 31, 2028.
Virginia companies imported approximately $89 million under AGOA in 2025.
U.S. and China Announce Board of Trade Product Lists
On September 27, the United States and China released reciprocal product lists under the U.S.-China Board of Trade framework identifying goods that each side will consider for future reduced tariff treatment. The announcement does not implement any immediate tariff reductions, and neither the timing nor the extent of any future tariff relief has been specified.
To view the list of U.S. products for import into China, click here. To view the list of Chinese products for import into the U.S., click here.
U.S. Signs Trade Agreement with Jordan
On July 21, the U.S. announced the signing of a reciprocal trade agreement with Jordan that preserves duty-free access for nearly all U.S. goods under the existing U.S.-Jordan Free Trade Agreement. The agreement also secures commitments that should ease export logistics and reduce barriers for U.S. companies, including paperless and pre-arrival customs processing, acceptance of electronic bills of lading, faster release of low-risk express shipments, elimination of Jordan's special tax on U.S.-produced motor vehicles, stronger intellectual property enforcement, and a commitment not to impose customs duties or discriminatory taxes on U.S. digital services and electronic transmissions.
Virginia exported just over $8.6 million in goods to Jordan through July 2026.
For more information, click here.
U.S. Trade Activity
Recent trade and customs developments were characterized by expanded enforcement initiatives, export control changes, heightened supply chain compliance requirements, and ongoing tariff litigation. CBP proposed new import disclosure requirements, strengthened importer registration rules, and finalized new export manifest requirements for rail shipments. Export controls were eased for certain transactions involving the UAE and drones while new restrictions were imposed on selected critical minerals. Additional developments included the expansion of forced labor import restrictions, continuation of IEEPA tariff refund processing, and a court ruling upholding the elimination of de minimis treatment. Meanwhile, USTR is seeking stakeholder input on foreign trade barriers and intellectual property infringement concerns as part of its ongoing trade policy and enforcement efforts.
BIS Eases Controls on Exports to UAE
The Bureau of Industry and Security has issued a final rule that, effective July 10, will significantly upgrade the status of the United Arab Emirates under the Export Administration Regulations, expanding opportunities for U.S. exporters to provide certain military, dual-use, space, and advanced computing technologies, including AI chips and servers, with reduced licensing requirements and fewer restrictions on exports supporting the UAE's drone programs.
For more information, click here.
BIS Eases Export Controls for Drones
The Bureau of Industry and Security has issued a final rule that, effective August 13, eases export controls on certain unmanned aerial vehicles (drones) and related parts, components, accessories, attachments, technology, and software under the Export Administration Regulations.
For more information, click here.
BIS Imposes Export Restrictions on Some Critical Minerals
The Bureau of Industry and Security has issued a temporary final rule to restrict the exportation of black mass and tungsten waste and scrap. Under this rule, from August 27, 2026 to August 27, 2027, these materials may not be exported from the United States and must remain physically located within the United States unless otherwise explicitly authorized by BIS.
For more information, click here.
CBP Considering Heightened Import Disclosure Requirements
U.S. Customs and Border Protection is accepting comments through December 1 on potential regulatory changes aimed at giving the agency greater visibility into imported-goods supply chains and improving its ability to detect illegal transshipment and other customs violations. The initiative is one of several actions expected under a June 2026 executive order directing a broader tightening of U.S. customs enforcement.
Under the proposed changes, Virginia importers could face broader recordkeeping and data-validation obligations, greater scrutiny of country-of-origin claims, and increased responsibility for obtaining and reconciling information from foreign suppliers. CTPAT participants could also face new traceability, cybersecurity, and data-integrity requirements, although CBP is considering additional benefits for companies that provide the agency with greater supply-chain visibility.
For more information, click here.
CBP Voiding IOR Numbers for Incomplete or Inaccurate Information
U.S. Customs and Border Protection issued a notice announcing that, beginning September 18, it will begin verifying information submitted on CBP Form 5106 and will void importer of record (IOR) numbers associated with incomplete or inaccurate filings. Virginia importers and customs brokers should ensure that identifying and contact information provided on the form is accurate, complete, and belongs directly to the IOR, as a voided IOR number cannot be used to enter goods into the United States.
For more information, click here.
CBP to Require Advance Electronic Rail Export Manifests
U.S. Customs and Border Protection has issued a final rule, effective October 26, requiring advance electronic transmission of export manifest data through ACE for rail cargo departing the United States for Canada or Mexico. The requirement applies regardless of whether electronic export information is otherwise required, which is generally not the case for shipments valued at $2,500 or less per Schedule B number or for most shipments to Canada. The compliance date is October 26, 2027.
For more information, click here.
Forced Labor Import Ban List Expanded
Effective August 3, the Department of Homeland Security added 43 China-based companies to the Uyghur Forced Labor Prevention Act Entity List (UFLPA), barring their goods from entering the United States. The additions, which represent the largest single expansion of the list to date, cover companies in the aluminum, cotton, apparel, copper, gold, seafood, frozen food, and transportation infrastructure sectors and bring the total number of listed entities to 187.
Virginia companies need to review their supply chains to ensure they remain in compliance.
For more information, click here.
FCC Bans Imports of Foreign-Made Power Inverters and Autonomous Robots
The Federal Communications Commission has issued a notice that, effective July 28, prohibits imports of new foreign-made connected power inverters and advanced robotic devices, which have been added to the FCC’s Covered List. The Covered List comprises equipment and services that have been determined to pose an unacceptable risk to U.S. national security or the security and safety of U.S. persons. Equipment on this list is banned from receiving new FCC equipment authorizations, which are required prior to importation, marketing, or sale in the U.S.
For more information, click here.
Court Upholds President’s Elimination of De Minimis Exemption for Imports
In an August 13 ruling, the U.S. Court of International Trade (CIT) upheld President Trump’s executive orders from last year, ending the de minimis exemption for imports. The exemption previously allowed imports valued at $800 or less to enter the United States free of duty and taxes and subject to expedited clearance processing.
For more information, click here.
Next Phase of IEEPA Tariff Refunds to Launch October 6
In a September 15 filing to the Court of International Trade (CIT), CBP told the Court that it will deploy Phase 3 of its CAPE tariff refund system on October 6. Phase 3 will cover entries that are liquidated for more than 80 days and filed by plaintiffs (1) for which the CIT has ordered reliquidation and (2) that submitted a valid importer of record number to CBP by July 30, 2026. CBP will provide additional instructions regarding CAPE Phase 3 to the plaintiffs who provided an IOR number after July 30, 2026.
For more information, click here.
USTR Seeking Public Comments on Foreign Trade Barriers to U.S. Exporters
The Office of the United States Trade Representative (USTR) issued a notice requesting public comments to help identify significant foreign barriers to, or distortions of, U.S. exports of goods and services and U.S. foreign direct investment for inclusion in the 2027 National Trade Estimate Report on Foreign Trade Barriers (NTE Report). USTR will also consider responses to this notice as part of the annual review of the operation and effectiveness of all U.S. trade agreements regarding telecommunications products and services that are in force with respect to the United States.
Virginia exporters should consider submitting comments to ensure that foreign market access challenges affecting their exports are reflected in the NTE Report. USTR has increasingly relied on the NTE Report to identify and address foreign trade barriers in its negotiations with trading partners. Comments are due by 11:59 p.m. EDT on October 29, 2026.
USTR Seeking Comments on Annual Review of Foreign IPR Infringing Markets
The Office of the U.S. Trade Representative is requesting written comments by October 7 that identify online and physical markets to be considered for inclusion in the 2026 Review of Notorious Markets for Counterfeiting and Piracy (Notorious Markets List). The Notorious Markets List identifies examples of online and physical markets that reportedly engage in or facilitate substantial copyright piracy or trademark counterfeiting.
For more information, click here.
Special Topic: A New Presidential Tool for Imposing Tariffs
The Constitution grants Congress authority over tariffs and foreign commerce, but Congress has long delegated limited tariff powers to the executive branch. Existing authorities include Section 232 of the Trade Expansion Act of 1962, Sections 122, 201, and 301 of the Trade Act of 1974, and Section 338 of the Tariff Act of 1930. The Trump Administration has made extensive use of these authorities to pursue a range of economic, national security, and foreign policy objectives. In September, Congress added yet another tool to the President's trade arsenal, granting new authority to impose tariffs on Russia and countries that continue to purchase Russian energy.
After passing both chambers of Congress, President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law on September 18. The law requires the President, within 30 days of enactment, to impose tariffs of up to 500 percent on Russian goods and tariffs of up to 100 percent on all goods from countries that:
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knowingly made new purchases of Russian crude oil or natural gas on a date that is on or after 30 days after the date of enactment of the bill and were among the five largest importers, by total volume, of Russian crude oil or natural gas during the most recent 12-month period; or
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were among the top five countries facilitating Russian oil sanctions evasion during the most recent 12-month period.
The President may exempt a country if:
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that country’s total imports of Russian natural gas during the most recent 12-month period were less than 15 percent of the total annual exports of natural gas from Russia during that period; and
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that country has taken significant steps to reduce its imports of Russian natural gas.
The law does not identify any countries by name, and determining which countries fall within its criteria is not straightforward. Based on recent trade and shipping data, China and India are by far the largest purchasers of Russian crude oil, making them likely candidates for scrutiny under the law. For natural gas, the European Union as a bloc, China, Türkiye, and Japan appear to be among the largest importers. However, the natural gas exemption may provide a pathway for some U.S. partners to avoid tariffs. For example, individual EU member states, as well as Japan, may each fall below the law's 15 percent threshold.
If the President imposes tariffs under the new authority, the law requires that they apply to all goods from the targeted countries and that they be assessed in addition to any other applicable tariffs, including antidumping and countervailing duties and tariffs imposed under Sections 122, 201, and 301 of the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962. At the same time, the legislation preserves significant executive discretion. The President may waive the application of tariffs if doing so is determined to be in the national interest of the United States.
For Virginia importers, the significance of the law will depend largely on how the Administration chooses to implement it. The most apparent targets, China and India, are also countries with which the Administration is simultaneously engaged in significant trade negotiations. As a result, the new law creates the potential for sweeping additional tariffs on imports from some of the United States' largest trading partners, but its practical impact will remain uncertain until the Administration identifies covered countries and announces its implementation plans.