National Security: Trump Orders Review of Export, Supply Chain, ‘Reverse CFIUS’ Rules

Skadden Publication / Executive Briefing: Latest Updates on Trump Executive Actions

Brian J. Egan Michael E. Leiter Tatiana O. Sullivan

Several of President Donald Trump’s initial actions — from an executive order instituting a new artificial intelligence (AI) policy framework, to those directing the use of the U.S. military to provide border security, the withdrawal of the U.S. from the Paris Agreement and a pause in U.S. foreign assistance — will broadly impact U.S. national security and foreign policy. (See our AI and energy and environment analyses.)

President Trump’s January 20, 2025, “America First Trade Policy” memorandum (see our tariffs analysis) initiated more specific actions to review and revise several national security regulations:

  • Outbound investment regulations: The Treasury Department will review and consider whether the regulations adopted in late 2024 to regulate outbound U.S. investments in China provide “sufficient controls to address national security threats.”
  • Information and Communications Technology and Services (ICTS): The Commerce Department will review and recommend any “appropriate action” with respect to the ICTS regulations restricting imports of “connected vehicles” and related technologies from China. Commerce will also consider whether additional connected products should be considered.
  • Export controls: The State and Commerce Departments will recommend changes to U.S. export controls to maintain U.S. technology leadership, close “loopholes” and “incentivize compliance by foreign countries.” Presumably this will include a review of the “AI diffusion” export controls adopted by former President Joe Biden’s Commerce Department in January 2025.
  • Government contracts: The Office of Management and Budget will review the impacts of “any distorting impact of foreign government financial contributions or subsidies” on U.S. government procurement programs and identify mitigation measures.

Reports are due to President Trump by April 1, 2025.

See the full Executive Briefing publication

This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.

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