Angela M. Santos, Antonio J. Rivera, Megan Barnhill, James Kim*, Nancy A. Noonan, Diana Dimitriuc Quaia, Christopher H. Skinner, Matthew Tuchband, Lucas A. Rock, Mario A. Torrico, Maya S. Cohen, Collin M. Douglas, Derek Ha, Tyler J. Kimberly, Andrew McArthur, Kelsey Griswold-Berger*
Welcome to the July 2026 issue of “As the (Customs and Trade) World Turns,” our monthly newsletter where we compile essential updates from the customs and trade world over the past month. We bring you the most recent and significant insights in an accessible format, concluding with our main takeaways — aka “And the Fox Says…” — on what you need to know.
On July 7, US Securities and Exchange Commission (SEC) Chairman Paul S. Atkins issued a statement outlining the agency’s 2026 Regulatory Agenda and its key priorities for the coming year.
On July 2, the Centers for Medicare & Medicaid Services (CMS) released the Calendar Year 2027 Hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Proposed Rule (CMS-1850-P).
The US data center sector is in the midst of a historic capital cycle as artificial intelligence (AI), cloud computing, and digital infrastructure demand pushes hyperscalers and colocation providers to commit capital at unprecedented scale.
D. Jacques Smith, Michael F. Dearington, Nadia Patel, Hillary M. Stemple, Laura Zell, Michelle J. Shapiro, Meghan F. Hart, Meredith Gillespie
Headlines that Matter for Companies and Executives in Regulated Industries
A newly filed California suit, Winters v. OpenAI, Inc. et al., may become the first case to test whether product liability and negligence per se theories can reach a generative artificial intelligence (AI) chatbot’s design and deployment decisions, after ChatGPT-4o’s health-related guidance allegedly contributed to a plaintiff’s near-fatal medical emergency.
On July 16, the Centers for Medicare & Medicaid Services (CMS) published the 2027 Physician Fee Schedule (PFS) proposed rule. Among other provisions, CMS has now proposed to convert a previously voluntary filing to a mandatory submission: requiring 340B Covered Entities to submit Part D claims data to the Medicare Part D Claims Data 340B Repository beginning in 2027.
On July 20, President Trump issued a proclamation imposing an additional 50% ad valorem duty on Canadian-origin alcoholic beverages imported into the United States, effective 12:01 AM ET, August 19. The action is a direct, sector-matched response to Canada’s provincial bans on the purchase, distribution, and retailing of US alcoholic beverages, which have been in effect across virtually all provinces and territories since March 2025.
The Internal Revenue Service (IRS) released Notice 2026-40 on June 18, announcing that proposed regulations regarding qualified opportunity zones (QOZs) under §§ 1400Z-1 and 1400Z-2 of the Internal Revenue Code are forthcoming and providing long-anticipated transitional guidance relating to qualifying investments thereunder.
On July 14, the Ninth Circuit vacated a $40 million jury verdict against XP Power, LLC in a closely watched trade secret misappropriation case brought by Comet Technologies USA, Inc. and its affiliates under the federal Defend Trade Secrets Act (DTSA) and, at least initially, the California Uniform Trade Secrets Act (CUTSA).
On July 13, in connection with the suspension of its Cybersecurity Maturity Model Certification (CMMC) Phase II roll-out, the US Department of Defense/War established a CMMC Reform Task Force, charged with reviewing and proposing reforms to the Department’s cybersecurity program requirements for the Defense Industrial Base (DIB).
The Institutional Limited Partners Association (ILPA) continues to refine its guidance on continuation funds to address the needs of limited partners in the current market.
New York’s data center pause is temporary, but the review process itself will make permanent the assumptions, standards, and evidentiary records that govern future development.
Businesses and industries have developed comprehensive approaches to protecting confidential, classified, and proprietary information to serve their corporate interests. Now, businesses need to think about and prepare for a new threat: employees using information to make money on online betting platforms.
D. Jacques Smith, Michael F. Dearington, Nadia Patel, Hillary M. Stemple, Laura Zell, Michelle J. Shapiro, Roberto Martinez, Meredith Gillespie
Headlines that Matter for Companies and Executives in Regulated Industries
On June 18, the US Department of Commerce, Bureau of Industry and Security (BIS), announced the release of one new General Authorization (GA) and one amended GA related to the January 16, 2025, “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles” Rule (the Connected Vehicles Rule).
On July 14, the US Department of Justice (DOJ), together with the US Department of Homeland Security (DHS) and US Customs and Border Protection (CBP), held a major news conference in Chicago, Illinois, announcing that the Trade Fraud Task Force has surpassed $1 billion in criminal and civil recoveries, penalties, forfeitures, and charged losses in less than one year since its launch.
Businesses often focus on whether a regulation is lawful under the Administrative Procedure Act (APA), an inquiry that traditionally turns on whether an agency action is arbitrary and capricious. Recent US Supreme Court decisions suggest a different question may come first: whether courts ever reach that analysis at all.
On July 14, a California federal court granted a preliminary injunction blocking the California Attorney General from enforcing Senate Bill 343 (SB 343), a law regulating recyclability claims on products and packaging.
Peptides remain one of the hottest topics in the drug industry, and many therapeutic peptides offered for sale today have been compounded.
The US Department of Defense (DoD) issued a memorandum yesterday directing immediate suspension of the Cybersecurity Maturity Model Certification (CMMC) Phase 2 roll-out, which previously was scheduled to go into effect November 10.
The US Environmental Protection Agency (EPA) recently released its proposed Sixth Unregulated Contaminant Monitoring Rule (UCMR 6), which would establish the parameters that water systems must monitor.
The US Supreme Court’s 2024 decision in Seven County Infrastructure Coalition v. Eagle County endorsed a narrower vision of the National Environmental Policy Act (NEPA), focused on informing agency decisions rather than producing exhaustive analyses of indirect, cumulative, or policy-related impacts.
D. Jacques Smith, Michael F. Dearington, Nadia Patel, Hillary M. Stemple, Laura Zell, Michelle J. Shapiro, Nardeen Billan, James G. Pizzo
Headlines that Matter for Companies and Executives in Regulated Industries
On July 1, the South Dakota Supreme Court issued a unanimous decision affirming summary judgment in favor of a life settlement investor, holding that the investor was entitled to retain the full $10 million death benefit under a life insurance policy that the insured’s estate had sought to void as an alleged stranger-originated life insurance (STOLI) arrangement.