Trump Administration Agrees to Delay Implementation of BIS Affiliates Rule

On October 30, 2025, U.S. Secretary of the Treasury Scott Bessent announced in an interview with Fox News a one year suspension of the enforcement of the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) “Affiliates Rule.” The announcement came shortly after meetings between former President Donald Trump and Chinese leader Xi Jinping. In turn, President Xi agreed to suspend its newly implemented rare earth export controls for one year. Additional details from the meetings have been released in the White House’s Fact Sheet, noting that the United States, starting on November 10, 2025, will suspend implementation of the Affiliates Rule.

The Affiliates Rule, issued on September 29, 2025, extends existing restrictions under the (1) Entity List, (2) Military End-User List, and (3) those entities on the OFAC SDN List that are designated under the specific sanctions programs identified in section 744.8(a) of the Export Administration Regulations (i.e., related to Russia, Belarus, anti-terrorism, anti-narcotics trafficking, transnational criminal organizations and proliferation of weapons of mass destruction).  This rule mirrors the “50 Percent Rule” under U.S. economic sanctions regulations and imposes significant new compliance obligations on exporters and re-exporters.

The Affiliates Rule will remain in effect until BIS issues a formal notice of suspension. That notice will clarify the scope of the suspension, as it is not yet confirmed whether the pause will apply to all companies on the restricted lists or only to Chinese-listed entities.

Companies should note that the Affiliates Rule has been suspended but not rescinded. Businesses should therefore prepare for its eventual enforcement.

For additional information regarding this development please contact a member of our Export Controls Practice.