Diesel Export Ban Could Backfire; White House Denies Preparing Embargo

The White House’s denial that it is preparing a diesel export ban leaves the proposal a political demand rather than an announced policy. An embargo could briefly lower prices near Gulf Coast refineries but offer limited relief at the pump: reduced refinery output could raise gasoline and jet-fuel costs, while import-dependent West Coast markets face higher international prices.

Congress Passes Russia Sanctions Bill with Tariffs Targeting Major Energy Buyers

The measure would sanction Russian officials, financial institutions, energy projects, and vessels associated with sanctions evasion. It also would direct the president to impose additional tariffs of up to 100 percent on goods from countries that continue qualifying purchases of Russian crude oil or natural gas and rank among the five largest importers by volume during the 12 months preceding enactment.

President Imposes Canadian Import Bans, Revises 50% Tariffs as Trade Dispute Escalates

The White House escalated its trade dispute with Canada on September 9, announcing import bans on specified Canadian alcohol, dairy products and large motorcycles and revising the products subject to 50% ad valorem duties. The tariff changes take effect September 15; the import bans begin September 29.

CISA Cuts Regional Security Services as China, Iran and Quantum Risks Intensify

The federal agency charged with helping protect civilian networks and critical infrastructure is reducing services and operating with a depleted workforce as adversaries increasingly use artificial intelligence to find weaknesses in essential systems.

Welcome to Your WTTL

The Washington Tariff and Trade Letter introduces a web-based format for easier review, research and sharing. Clicking on a story in the newsletter will now bring you to the full text on our new web site. A .pdf version of the newsletter is available below. For any questions about website access and your subscription, please contact us at Info@TradeRegs.com – Or call the Editor, Frank Ruffing, at +1.703.283.5220

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Vol 46 No. 39, September 28, 2026

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OFAC Centralizes Sanctions Penalty Rules

The Treasury Department’s Office of Foreign Assets Control has consolidated penalty and enforcement provisions for sanctions imposed under the International Emergency Economic Powers Act and the United Nations Participation Act in new 31 C.F.R. Part 505.

U.S.–Ukraine Fund Approves Energy and Critical Minerals Investments

The approvals mark URIF’s expansion from its first technology investment into energy infrastructure and critical minerals, advancing a U.S.–Ukrainian strategy to pair reconstruction with supply chain security. For project sponsors and investors, the fund offers a channel to seek financing and partnerships in priority sectors, supported by joint government oversight and a developing political risk insurance framework.

More trade & tariff news

DOJ Fraud Division Sets Corporate Enforcement Priorities, Directs Whistleblower Incentives

he memorandum sets investigation priorities for the DOJ’s Fraud Division and identifies factors prosecutors must weigh heavily in corporate charging decisions and negotiated resolutions, including management involvement, harm to taxpayer-funded programs, national security threats and immigration offenses. It also directs new whistleblower incentives, pairing targeted enforcement with efforts to encourage disclosures from companies and individuals, including participants in the misconduct.

WTO Talks Falter as Reform Disputes Deepen

WTO members are struggling to negotiate new trade rules while arguing over how the institution should make and enforce them. At the October 1 Trade Negotiations Committee meeting, Director-General Ngozi Okonjo-Iweala pressed delegations to compromise, as divisions over agriculture, fisheries subsidies and development collided with disputes over consensus, plurilateral agreements and the capacity of smaller missions to participate.

On the calendar

Treasury Targets Iran’s Automotive and Rail Industries

Treasury issued determinations under Executive Order 13902 on October 1 targeting Iran’s automotive and rail sectors, alongside designations of industrial firms and foreign suppliers.

Canadian Product Bans Take Effect

Restrictions on specified Canadian alcoholic beverages, dairy products and motorcycles took effect September 29, escalating the bilateral trade dispute.

Milwaukee's Best: Not Much

G20 trade ministers left Milwaukee united against using food trade as a weapon but divided over forced labor, industrial overcapacity and changes to core trade rules. A separate steel framework offered a first step toward coordinated action; broader proposals fell short of consensus.

BIS Penalties Rise Toward Statutory Maximums Even as Enforcement Volume Falls

A growing share of Bureau of Industry and Security export-control settlements under the Trump administration have approached the maximum penalties allowed by law, according to a Center for Strategic …

Steel-Producing Economies Adopt Milwaukee Framework to Address Excess Capacity

Progress on steel overcapacity was limited to an initial framework for coordinated action. Implementation will depend on domestic law, national circumstances and applicable trade obligations. The framework itself does not establish a uniform tariff or an immediate reporting requirement for importers.

Busan Extension Signals Possible Further Delay for BIS Affiliates Rule

The reported extension of the U.S.–China Busan trade agreement until January 10, 2027, could prolong the suspension of the Bureau of Industry and Security’s Affiliates Rule. Whether the extension covers that rule, however, remains unconfirmed in the official materials reviewed.

U.S. Eases Syria Defense Trade Restrictions; BIS Country-Group Not Yet

The United States has lifted comprehensive economic sanctions on Syria and is easing defense trade restrictions, but export controls remain uneven across agencies. State’s ITAR amendment does not remove Syria from BIS Country Group E:1 or eliminate Syria-specific EAR licensing requirements. Until Commerce acts, businesses must continue to apply those controls alongside targeted Treasury sanctions.

Conflict drives Northern Sea Route growth

Russia’s Northern Sea Route is attracting record interest as war and insecurity disrupt shipping through the Middle East, but its emergence as an Asia–Europe trade corridor remains constrained by seasonal ice, limited capacity, sanctions exposure and dependence on Russian permits and icebreakers. A new analysis by Mikhail Korostikov argues that geopolitical conflict—not climate change or improved commercial economics—is driving the expansion, raising doubts about whether traffic will endure if traditional routes stabilize.