U.S. Firms Pressure Trump on Controversial Export Rule

A U.S. lobbying group is pushing the Trump administration to suspend the Affiliates Rule, claiming it has halted billions of dollars in exports. The rule affects companies tied to sanctioned firms, sparking opposition from the private sector worried about global supply chain impact.

U.S. firms, including major names like Oracle and Amazon, are urging the Trump administration to suspend a contentious export rule. The regulation, known as the Affiliates Rule, halts the shipment of goods to companies part-owned by sanctioned entities, affecting billions in U.S. exports.

The National Foreign Trade Council (NFTC) addressed a letter to President Trump, arguing the rule disrupts global supply chains and compromises U.S. national security by pushing countries like China to seek alternatives. NFTC President Jake Colvin emphasized the rule's contradiction with efforts to reduce the trade deficit and bolster U.S. exports.

The rule, targeting firms owned by sanctioned entities, has provoked strong opposition, mainly due to its hindrance of export license processing. With a significant backlog, the delay impacts U.S. technology exports globally, particularly those destined for China. The White House and Commerce Department have not commented on these tensions.

(With inputs from agencies.)