Skip to main content
Page header background image

Legal Updates

Chemical Industry Regulatory Update – April 2025

A newsletter from The Adhesive and Sealant Council and Thompson Hine LLP

The chemical industry is subject to complex and ever-evolving laws and regulations. New standards governing the production and use of chemicals are implemented every year worldwide, and existing laws and regulations are constantly changing to keep pace with new information and scientific advancements. Chemical Industry Regulatory Update provides a monthly digest of recent legislative and regulatory developments and related industry news.

Experts to Present Critical Sustainability Topics + Stakeholder Discussions in September

The 2025 ASC Sustainability Summit will deliver critical awareness, engagement and alignment with stakeholders within the adhesive & sealant industry. The summit programming will have sessions highlighting three markets: building and construction, packaging, and transportation, each of which has unique needs and value chain. This is a critical sustainability event for your team to attend to stay on top of this important movement within many industries. Learn More.

DHS Implements Foreign National Registration Requirement

The U.S. Department of Homeland Security (DHS) has announced a new registry for foreign nationals, effective April 11, 2025. Although the registry was challenged in federal court, the court allowed its implementation to proceed. Read more.

A Tale of Two Decisions: District Courts Diverge on Constitutional Standing to Bring Pension Risk Transfer Claims

On March 28, 2025, two neighboring district courts issued sharply contrasting decisions on constitutional standing in lawsuits challenging pension risk transfers under the Employee Retirement Income Security Act of 1974 (“ERISA”). The United States District Court for the District of Columbia, in Camire et al. v. Alcoa USA Corp. (“Alcoa Decision”), concluded plaintiffs lacked standing to bring a case under Article III of the Constitution (referred to as “Article III standing”) because they failed to sufficiently allege either actual injury or a concrete, imminent risk of harm. On the same day, however, the District of Maryland reached the opposite conclusion in Konya et al. v. Lockheed Martin Corporation (“Lockheed Decision”), finding plaintiffs had “eked out” allegations sufficient to establish injury-in-fact at the pleading stage. These decisions may be an early indication of a future circuit split on what is required to establish constitutional standing with respect to claims brought under ERISA. Continue reading.

Trump Announces Reciprocal Tariffs on Over 60 Countries

On April 2, 2025, President Donald Trump announced baseline tariffs starting with 10% for all countries beginning on April 5, 2025, and as applicable, this additional duty rate shall increase up to 50% beginning on April 9, 2025 on specific countries with which the United States has the largest trade deficits or that impose non-tariff barriers on U.S. goods. Collectively, these reciprocal tariffs will remain in effect until President Trump determines the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated. Continue reading.

Trump Signs EO Prohibiting Duty-Free De Minimis Treatment for Goods from China

On April 2, 2025, President Donald Trump signed an Executive Order (EO) that excludes goods from China (including products of Hong Kong) from entering the United States duty-free under the de minimis exception beginning May 2, 2025. Section 321 of the Tariff Act of 1930, commonly referred to as the “de minimis” rule refers to the exemption allowing imports valued at $800 or less to enter the United States with minimal filing requirements and duty-free “to avoid [the] expense and inconvenience to the Government disproportionate to the amount of revenue that would otherwise be collected.” This action was previously announced but delayed until such time as U.S. Customs and Border Protection (CBP) certified to the Secretary of Commerce that it was ready to handle the increase processing of goods otherwise subject to the Section 321. Read more.

BIS Updates Boycott Requester List

On April 3, 2025, the Department of Commerce’s Bureau of Industry and Security (BIS) released its quarterly update to the Boycott Requester List. This list notifies companies, financial institutions, freight forwarders, individuals, and other U.S. persons of potential sources of certain boycott-related requests they may receive during the regular course of business. This resource is a public list of entities identified as making boycott-related requests in reports received by the BIS and follows the BIS July 2023 policy memo implementing efforts to enhance enforcement and compliance with U.S. antiboycott regulations. Continue reading.

Defense Contractor Settlement Underscores Need for Cybersecurity Compliance and Risk Mitigation

A recent settlement agreement involving Massachusetts-based defense contractor MORSECORP Inc. highlights the growing risk of whistleblower claims and government scrutiny over cybersecurity compliance in federal contracts. MORSECORP agreed to pay $4.6 million to the U.S. Department of Justice (DOJ) to resolve allegations of non-compliance with cybersecurity standards. The settlement follows a trend of qui tam actions targeting contractors for failing to meet cybersecurity requirements mandated by regulations set forth in government contracts, including a pending action against Georgia Tech. Learn more.

Key Takeaways in SBA’s Final Rule: 8(a) Business Development Program

The U.S. Small Business Administration’s (SBA) December 17, 2024 final rule incorporates the comments addressed and changes adopted from its proposed rule, “HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs,” which we explored in a prior update. The final rule, which became effective January 16, 2025, applies to existing contracts but will not be applied retroactively. In this third and final installment in our series of updates analyzing the final rule, we examine notable changes to the 8(a) Business Development Program. Continue reading.

Federal Maritime Commission Launches Investigation into Global Shipping Chokepoints

On March 14, 2025, the Federal Maritime Commission (FMC) launched an investigation into transit constraints at key international maritime chokepoints. The FMC is seeking public comments from interested parties on their experiences and proposed solutions related to seven specific maritime locations: English Channel, Malacca Strait, Northern Sea Passage, Singapore Strait, Panama Canal, Strait of Gibraltar and the Suez Canal. The FMC also acknowledged that other disruptions affecting U.S. maritime shipping may arise, such as the eleven-week closure of the Port of Baltimore following the collision of the containership Dali with the Francis Scott Key bridge in March 2024, which resulted in losses estimated at $4 billion. Continue reading.

FinCEN Scales Back Corporate Transparency Act: Interim Final Rule Issued

On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule eliminating the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act (CTA), as previewed in its March 2, 2025 press release.

The interim final rule narrows the definition of a “reporting company” to include only entities formed in a foreign country and qualified to do business in a U.S. state. As a result, only entities classified as “foreign reporting companies” under the CTA must comply with BOI filing requirements. Additionally, foreign reporting companies are no longer required to file BOI with respect to any U.S. person who qualifies as a “beneficial owner,” defined as a person who exercises substantial control over the company or owns or controls at least 25% of the reporting company. Read more.

Achieving Recovery After a DOGE Payment Pause, Suspension, or Termination for Convenience

As described in a previous Thompson Hine client alert, President Trump’s recent executive orders have disrupted many federal contracts and projects, particularly Executive Order 14222, Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative. This order has significantly impacted federal contractors, leading agencies to withhold payments, issue stop-work orders, suspend contracts, and terminate contracts for convenience. Federal contractors should prepare for these disruptions and understand their rights and options for recourse.

Although the Department of Government Efficiency (DOGE) is new, its efforts are rapidly transforming the procurement landscape. Federal contractors should know they have options for cost recovery when an invoice goes unpaid, work is suddenly paused, or a notice of termination is received. Though these options are well-established under the law, response strategy is critical. An effective response can mean the difference between full recovery and no recovery at all for contractors. Continue reading.

White House Issues Executive Order on Restoring America’s Maritime Dominance

On April 9, 2025, President Trump issued an Executive Order (EO) aimed at revitalizing the domestic maritime industries and workforce to strengthen national security and the U.S. economy. The EO directs the Assistant to the President for National Security Affairs (APNSA) to coordinate with multiple federal agencies and submit a Maritime Action Plan (MAP) by November 5, 2025. The EO outlines 17 specific actions—each with varying timelines—designed to reverse decades of decline in domestic shipbuilding, where the U.S. now produces only 0.2% of the world’s ships compared to China’s 74%. The EO seeks to spur public and private investment in shipbuilding and waterfront development, streamline regulation and procurement inefficiencies that impede the growth of a robust domestic maritime industry, counter China’s unfair trade practices in the maritime and logistics sector, and promote the U.S. maritime workforce. Read more.

CBP Issues Guidance on Energy, Energy Resources and Critical Minerals from Canada Subject to 10% IEEPA Tariffs; President Trump Issues Executive Order Addressing Mineral Production

On March 19, 2025, U.S. Customs and Border Protection (CBP) issued guidance regarding the Harmonized Tariff Schedule of the United States (HTSUS) codes covering “energy” and “energy resources” from Canada that are now subject to 10% tariffs since March 4, 2025, pursuant to the International Emergency Economic Powers Act (IEEPA). See Thompson Hine Updates of March 4, 2025 and March 6, 2025. CBP’s guidance confirms that the terms “energy” and “energy resources”, as defined in Executive Order (EO) 14156 of January 20, 2025 (Declaring a National Energy Emergency), apply and expressly include “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3).” Read more.

USTR Releases President Trump’s 2025 Trade Policy Agenda and 2024 Annual Report

On March 3, 2025, the Office of the U.S. Trade Representative (USTR) delivered President Donald Trump’s 2025 Trade Policy Agenda, 2024 Annual Report, and World Trade Organization at Thirty report to Congress. This year’s trade agenda seeks to strengthen the middle class and national defense and to address trade deficits by focusing on a “Production Economy” and implementing an “America First” approach in trade relations. Continue reading.

EEOC and DOJ Issue Warning Against Unlawful DEI-Related Discrimination

On March 19, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice (DOJ) issued two technical assistance documents outlining their positions on discrimination related to diversity, equity and inclusion (DEI) in the workplace. The DOJ released a one-page technical assistance document titled, “What To Do If You Experience Discrimination Related to DEI at Work," which summarizes protections under Title VII and provides steps to take if one encounters workplace discrimination. The EEOC’s guidance, "What You Should Know About DEI-Related Discrimination at Work," is a more detailed, question-and-answer-style resource explaining how DEI initiatives intersect with Title VII and offering examples of unlawful discrimination related to DEI practices. These guidance documents reflect the EEOC’s interpretations of Title VII and provide insight into potential future enforcement activity. Read more.

Check out the latest Employment Legislation Outlook. This monthly digest is designed to keep you apprised of upcoming major state law changes in areas including paid sick and safe leave laws, family and parental leave, recreational and medicinal marijuana use, workplace gun laws, asking candidates about salary history and unpredictable scheduling.

Looking for Adhesive & Sealant Training?

ASC’s Training Academy Certificate Program offers a convenient and cost-effective, web-based method of workforce training ideal for new or new to a role staff and professionals. A variety of flexible and affordable subscription options are available.

Chemical Industry Regulatory Update is compiled by Thompson Hine lawyers on behalf of The Adhesive and Sealant Council. It should not be construed as legal advice, and the views and opinions expressed herein are those of the authors and do not necessarily reflect those of the ASC or its members.

Services