Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.
Rare earths in the news. On August 25, President Donald Trump warned that the US would levy steeper tariffs of up to 200 percent on Chinese products if China curbed its exports to the US of rare-earth magnets. As we reported this summer, Chinese imports of rare earth magnets into the US have actually been rebounding in the wake of a US-China trade framework, but that temporary agreement expires in November. China controls about 90 percent of the world’s rare-earth magnet production and the minerals used in their manufacture. At this writing, Li Chenggang, China’s senior trade negotiator, is reportedly en route to Washington for talks with Treasury officials and US Trade representative Jamieson Greer to explore a more enduring deal.
Meanwhile, in August, the Department of Defense’s Office of Strategic Capital announced a direct loan to Nevada-based MP Materials, which owns a rare earths mine in Mountain Pass, California – the only operating rare earths mine and processing facility in the US. The $150 million loan will support the company’s expansion of its heavy rare earth separation capabilities.
Chinese automaker Chery reaches export milestone. Chery Automobile has become the first Chinese automaker to have exported 5 million vehicles – more than 2.3 million of those in 2024 alone. The company, which manufactures both new energy and traditional fuel vehicles, is now ranked 233d on the 2025 Fortune Global 500 – a dramatic rise from its 385th rank in 2024, when it first appeared on the list. Chery is the fourth largest automobile maker in China; it operates in over 80 countries and regions and is China's leading vehicle exporter, followed by AIC, BYD, Great Wall Motors, and Geely. Its 2025 Tiggo 9, a plug-in hybrid SUV, sells in Canada for around CAD45,000 (USD32,600). Chery is owned by the municipal government of Wuhu city.
For the first time, Commerce publishes GDP data on the blockchain. On August 28, the Department of Commerce announced that it will begin posting real gross domestic product (GDP) data on nine major public blockchains. This is the first time a US federal agency has published such economic statistics on the blockchain. Commerce stated that, in July, it published its quarterly 2025 GDP data release from the Bureau of Economic Analysis to these blockchains: Bitcoin, Ethereum, Solana, TRON, Stellar, Avalanche, Arbitrum One, Polygon PoS, and Optimism. The project, Commerce officials stated, will supplement rather than replace the current way the data is released to the public. A Commerce press release stated, “Through this landmark effort, the Department hopes to demonstrate the wide utility of blockchain technology” and added that the data release is a “proof of concept” that will ultimately “broaden the scope of publishing future datasets” from the federal government on “other blockchains, oracles, and exchanges.”
US rejects IMO’s net zero framework and global pricing mechanism for carbon emissions from ships. As we've previously reported, in April International Maritime Organization (IMO) member nations agreed to implement a global pricing mechanism for carbon emissions from ships and to legally binding targets for such emissions: a 20 to 30 percent reduction in GHG emissions by 2030, a 70 percent reduction by 2040, and net-zero “by or around” 2050. The US did not take part in that agreement, leaving the negotiations before the vote occurred. In mid-August, the US formally rejected the agreement. A joint statement from Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and Transportation Secretary Sean Duffy stated that “the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization,” then went on to warn any IMO members that persist in supporting the net-zero framework that the US will ”not hesitate to retaliate” against them. The draft regulations amending the International Convention for the Prevention of Pollution from Ships’ Annex VI are set to be adopted in October during an extraordinary session of the Marine Environment Protection Committee. Detailed implementation guidelines are expected to be approved in spring 2026, and the regulations are expected to enter into force in early 2027. Reuters reports that many large shipping companies have already committed to achieving net-zero operations by 2050.
Washington state’s Formaldehyde in Cosmetics Rule bans intentional addition of formaldehyde, other chemicals to broad swathe of cosmetic products. On August 28, Washington state adopted the Formaldehyde in Cosmetics Rule – regulations promulgated under the state’s 2025 Toxics-Free Cosmetics Act (TFCA) that comprehensively ban 25 formaldehyde-releasing chemicals from cosmetics made, sold, or distributed in Washington. With this rule, Washington becomes the first US state to restrict the intentional addition of formaldehyde and formaldehyde releasers – chemicals that slowly release formaldehyde – to cosmetics. These chemicals are widely used as preservatives in such products as shampoos, conditioners, hair dyes, eyelash glues, mascaras, moisturizers, hair relaxers, and nail polishes. Among the chemicals specifically targeted by the rule are formaldehyde, mercury, methylene glycol, and a list of 25 formaldehyde releasers. The rule affects businesses of all sizes, from large manufacturers and ecommerce platforms to cosmetologists and local hair salons: any business that manufactures, distributes, sells, or uses cosmetic products to provide a service in Washington must comply. The rule’s restrictions go into effect January 1, 2027, and retailers have until December 31, 2027 to sell off noncompliant stock. The Washington Department of Ecology is offering assistance to small businesses and cosmetologists to help them switch to alternative products and is holding a webinar for retailers and distributors on TFCA compliance on October 1. Find out more about the webinar here.
Dr. Copper. The price of copper is climbing again, rising about .5 percent on September 1 on the London Metal Exchange to reach $9,927.50 a ton after gaining 3 percent in August. Copper prices have been volatile this year, rising above $10,000 a ton as US businesses sought to build stockpiles of the metal, only to plunge in early August in the wake of the government’s announcement of immediate 50 percent tariffs on some – but not all – copper imports. The rebound is being ascribed to a number of causes, most notably the weaker US dollar and expanding factory activity in China, which in August grew at the quickest pace in five months on the back of rising new orders. Copper is sometimes referred to as “Dr. Copper” for its track record as a global economic indicator.
President Trump signs the Maintaining American Superiority by Improving Export Control Transparency Act. The Maintaining American Superiority by Improving Export Control Transparency Act mandates that the Department of Commerce provide an annual report to specific congressional committees that includes details about license applications and other requests for authorization for exports, reexports, releases, and in-country transfers of items subject to the Export Administration Regulations (EAR) to entities that are located in D:5 countries (which includes China) and are included on the Entity List or the Military End-User List. Businesses that have pending license applications or requests for authorization to Covered Entities, or expect to in the future, should prepare their leadership or government affairs representatives for questions relating to the license applications due to bipartisan interest in ensuring export control laws are strictly enforced. Our concise alert tells you more.
Commercial space industry Executive Order to streamline regulatory review: Key implications. President Donald Trump has issued an Executive Order (EO), “Enabling Competition in the Commercial Space Industry,” intended to streamline commercial space licensing and expedite regulatory review for US-based operators. The EO outlines key objectives and tasks that various government agencies must undertake – laying the groundwork for imminent regulatory changes that will likely impact virtually every segment of the commercial space industry. See our alert.
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