In the context of the tariffs imposed by the Trump Administration on imported goods, a prevalent misconception has arisen that foreign suppliers automatically bear the cost of these tariffs. The reality, however, is more complex. The actual payment of tariffs is significantly influenced by the specific contractual agreements between U.S. buyers and their foreign suppliers.Continue Reading Understanding the Allocation of Tariff Payments

Last week, the U.S. Embassy in Paris issued a letter and certification form to multiple French companies requiring companies that serve the U.S. Government to certify their compliance with U.S. federal anti-discrimination laws. This certification request was issued in furtherance of President Trump’s Executive Order 14173 on Ending illegal Discrimination and Restoring Merit-Based Opportunities, issued on January 21, 2025. This Order addresses programs promoting Diversity, Equity and Inclusion (DEI) and requires that government contractors’ employment, procurement and contracting practices not consider race, color, sex, sexual preference, religion or national origin in ways that violate the United States’ civil rights laws.Continue Reading Understanding the U.S. Embassy Paris Certification Requirement

On 20 January 2025, France published a memorandum urging the EU to modify the Corporate Sustainability Reporting Directive (Directive 2022/2464, “CSRD”), and to postpone the application of the Corporate Sustainability Due Diligence Directive (Directive 2024/1760, “CS3D”). France’s statements resonate with the series of Executive Orders aiming in the U.S. at various markets deregulations, although to a lesser degree.Continue Reading Corporate Sustainability Obligations in the EU: France Urges the EU To Postpone the Application of Adopted EU Directives

The wine industry faced significant challenges due to tariffs imposed by President Trump’s first administration. During the presidential campaign, and since his election on November 5, 2024, President Trump has made it clear that he will enact higher tariffs as a key part of the political agenda of his second administration. A few days ago, he nominated Jamieson Greer as his pick for U.S. Trade Representative as the nation’s top trade official, who served as chief of staff to Robert Lighthizer, then U.S. Trade Representative during Trump’s first term; if confirmed by the U.S. Senate, Mr. Greer is expected “to pursue an ambitious trade agenda.” This post highlights the history of Trump’s tariffs on wine, their effects, and what might be expected in his new term.Continue Reading The Impact of Trump’s Tariffs on the Wine Industry: Past and Future

In the latest episode of Sheppard Mullin’s French Insider, a monthly podcast dedicated to guiding French investors and companies through the complexities of investing and operating in the United States, Sheppard Mullin’s Jonathan Meyer offers a deep dive into the anticipated shifts under the next Trump administration. Meyer, a partner in the firm’s Governmental Practice Group and a seasoned authority in national security, and former General Counsel for the Department of Homeland Security, brings his extensive experience and insider perspective to the fore, providing invaluable insights for businesses bracing for change.Continue Reading Navigating the New Era: Insights from “Back to the White House: The Next Trump Administration”

In a land before time (technologically speaking . . . so, like, the mid-nineties), the most basic software encryption functions were controlled under the U.S. International Traffic in Arms Regulations. The then-current version of Netscape or Lotus Notes (the hot tech of the era) were controlled under the same regulatory regime as missiles and fighter jets. Then, in 1996, an executive order moved encryption to commercial export controls and freed up the software industry to flourish into its current, omnipresent state.Continue Reading The Commercial Industry Gets More Space: Reduced Export Controls Ease Cross-Border Collaborations (Part II of IV)

We may imagine that a space company begins with only a few screws and some sheet metal in a garage.[1] But regardless of its origins, not long after that early phase, that same company is likely to have a global reach. Commercial space companies inherently involve elements such as international supply chains, foreign customers, and design and engineering talent from around the world.Continue Reading Space Rules, or . . . Space Rules!: Reduced Export Controls Ease Cross-Border Collaborations (Part I of IV)

In December 2023, President Biden signed the new Foreign Extortion Prevention Act (FEPA), closing a gap in the Foreign Corrupt Practices Act (FCPA) by criminalizing the “demand side” of foreign bribery. While the FCPA prohibits offering or paying bribes to foreign government officials, the FEPA made it illegal for foreign officials to solicit or accept bribes from U.S. entities or individuals. Less than a year after its enactment, Congress has quietly passed significant amendments to the new law, with the stated goal of removing “inconsistencies between the language of the FCPA and the FEPA [b]ecause these statutes are intended to be complementary, with parts of them addressing the same problem.” See 170 Cong. Rec. H4656-02, H4657.Continue Reading Congress’s Recent “Technical” Amendments to the Foreign Extortion Prevention Act Change Key Aspects of the New Law

Companies usually hire a foreign national who requires visa sponsorship because they cannot find a U.S. worker with those skill sets, which is frequently in the STEM fields. However, visa sponsorship comes with significant costs to the employer. Employers may be able to recover a portion of the immigration sponsorship fees by implementing what are called “clawback” provisions into their employment agreements. Clawback provisions are terms in the employment agreements that, in the event of a resignation by the employee before a certain date, require the employee to reimburse the employer for a portion of the costs or fees associated with his or her visa sponsorship.Continue Reading You Are Sponsoring a Foreign National Employee for Permanent Residency, Can You Clawback Some of the Fees?

For companies in the U.S. that hold certain personal data and U.S. Government-related data, rules stemming from recent Executive Order (“EO”) 14117 on “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern” may create obstacles and new compliance obligations. Under this EO, the Attorney General is charged with issuing regulations to either outright prohibit or impose restrictions on transactions involving bulk sensitive personal data or U.S. Government-related data when such transactions involve a “country of concern.”Continue Reading Data, Deals, and Diplomacy: How the Bulk Data Executive Order Will Shape Future Contracts and Security Practices