The Trump administration advances trade, workforce, and enforcement policy changes amid legal hurdles.

This past week, the Trump administration has continued to implement its policy priorities, announcing plans for reciprocal tariffs as well as a 25% tariff on steel and aluminum imports and pausing DOJ enforcement of the Foreign Corrupt Practices Act. These moves are coupled with the administration’s ongoing efforts to reduce the federal workforce and federal spending, despite legal challenges.

Latham lawyers are carefully monitoring the rollout of President Trump’s policy priorities through executive orders, agency actions, and installment of new personnel. Below is a high-level overview of these actions this week, broken down by topic, along with updates on related court challenges, personnel changes, and other breaking developments in their implementation.

Trade Policy

On February 13, President Trump signed a memorandum announcing plans for reciprocal tariffs on every country taxing US imports. It is not clear how quickly these plans will take effect.

On February 10, President Trump announced a 25% tariff on all steel and aluminum imports, effective March 12. The proclamation eliminates country exceptions for allies such as Canada, Mexico, Japan, and South Korea, as well as product-specific tariff exclusions. (For more information on navigating the new tariffs, see this blog post. To view Latham’s on-demand webcast “Navigating New Tariff and Import Trade Realities Under the Second Trump Administration,” register here.)

FCPA Enforcement

On February 10, President Trump signed an executive order that puts a six-month pause on DOJ enforcement of the Foreign Corrupt Practices Act (FCPA), which prohibits bribery of foreign government officials. Newly confirmed Attorney General Pam Bondi is charged with preparing new enforcement guidelines. This follows an announcement from the Attorney General last week that the Criminal Division’s FCPA unit will prioritize investigations related to foreign bribery that facilitates the criminal operations of cartels and transnational criminal organizations, while shifting focus away from other cases. (For more detailed information, see this blog post and more detailed Client Alert. For more information on UK and European enforcement risk, see this blog post.)

Federal Workforce

On February 11, President Trump signed an executive order designed to shrink the size of the federal workforce. Agencies will be restricted to hiring no more than one employee for every four who leave the agency, and they must consult with the Department of Government Efficiency before hiring for a position. According to a White House fact sheet, the order will “significantly reduce the size of government” through “large-scale” job reductions. This follows stop-work orders for employees at the US Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB).

The next day, on February 12, President Trump signed an executive order directing Secretary of State Marco Rubio to “reform the Foreign Service and the administration of foreign relations to ensure faithful and effective implementation of the President’s foreign policy agenda” and stating that “[t]he Secretary must maintain an exceptional workforce of patriots to implement this policy effectively.” On February 13, Office of Personnel Management officials advised agencies to dismiss probationary employees.

Status of Challenges

In response to the stop-work orders, a federal judge issued a temporary restraining order blocking USAID from placing employees on administrative leave and immediately evacuating those stationed overseas. On February 10, a union representing thousands of those employees raised concerns to the court that the administration was not complying with that order.

On February 12, a federal district court denied a request for a preliminary injunction to block President Trump’s buyout plan for federal workers. Over 70,000 workers have accepted the buyout offer so far.

Federal Spending

In January, the Office of Management and Budget (OMB) issued a memorandum pausing all agency grant, loan, and other financial assistance programs while agencies review them for compliance with President Trump’s executive orders. Although that memorandum was later rescinded, it has been challenged in court, and on February 11 an appeals court denied President Trump’s request to lift the lower court’s block on the funding freeze.

The National Institutes of Health (NIH) released a notice of updated policy at the end of last week that would significantly reduce the amount of funding that research institutions and universities can receive under the terms of their federal grants, to go into immediate effect. On February 10, however, a federal district court imposed a temporary restraining order, putting a pause on those plans. (For more detailed information, see this blog post.)

Immigration

The White House has issued a string of executive orders on immigration that are being challenged in the courts. On February 10, a federal judge in New Hampshire temporarily blocked enforcement of President Trump’s birthright citizenship executive order, following similar orders by other courts. And following last week’s suit by DOJ against Illinois over state sanctuary policies, on February 12 the Attorney General announced that DOJ is filing suit against New York for its “green-light laws,” which allow nonresident immigrants to obtain driver’s licenses, and clawed back millions in federal funding.

Gender Dysphoria Matters

On February 13, a federal district court issued a temporary restraining order blocking enforcement of President Trump’s January executive order on pediatric gender dysphoria matters. (For more detailed information about the original executive order, see this blog post.)

Key Appointments and Personnel Moves

This past week the following Cabinet posts were confirmed: Tulsi Gabbard (Director of National Intelligence) and Robert F. Kennedy, Jr. (Health and Human Services).

Hearings have been held, but confirmations have not been secured for: Brooke Rollins (Agriculture); Elise Stefanik (Ambassador to the UN); Kelly Loeffler (Small Business Administration); Howard Lutnick (Commerce); Kash Patel (FBI); Jamieson Greer (Trade Representative); and Linda McMahon (Education).

Nominees awaiting hearings include: Lori Chavez-DeRemer (Labor).

Personnel Changes

• President Trump was elected chairman by a reconstituted board of the John F. Kennedy Center for the Performing Arts in Washington, D.C. Earlier in the week, he selected Richard Grenell, former acting Director of National Intelligence and ambassador to Germany during the first Trump administration, as interim executive director.
• Present Trump selected Virginia’s Secretary of Public Safety and Homeland Security Terry Cole, a longtime veteran of the Drug Enforcement Administration, to run the agency.
• President Trump removed David Huitema as director of the Office of Government Ethics. The office’s chief of staff and program counsel, Shelley Finlayson, is now acting director.