Cheat Sheet

August 13, 2026

Both Houses of Congress are in now recess until early September. However, activity on the trade policy front continues…

40 Countries Identified for Transshipment Risk by Trump Administration: 

A White House report identified more than 40 jurisdictions, including the European Union, Canada, Japan, and Brazil, as associated with elevated illegal transshipment risk. The report warned that countries and companies attempting to evade Trump administration tariffs through illegal transshipment will be caught. It also said trading partners that cooperate will be treated as partners in restoring a fair-trading system.

In a report released Thursday, the White House Office of Trade and Manufacturing Policy accused dozens of countries of being part of China’s “shadow transshipment network,” sorting them “according to the scale of China-linked trade, the depth of their economic integration with China, and the weak-link advantages that make them susceptible to rerouting activity.”

The Financial Post has more information.

China Work Toward Tariff Reduction Package Ahead of Xi Visit; Negotiations with Canada Also Ongoing: United States Trade Representative Jamieson Greer met with Chinese Ambassador Xie Feng last week ahead of the planned September summit between President Trump and Chinese President Xi Jinping. The two sides are working to develop the U.S.-China Board of Trade, which is expected to identify roughly $30 billion in non-sensitive goods that could qualify for tariff reductions. Trump administration officials are pushing to finalize a package before the summit, though discussions remain ongoing. Read more at Politico.

There are also reports that there are active discussions with our neighbors to the north with hopes to avert increased tariffs on a huge swath of products.

Congress Faces Packed Fall Agenda:  Before leaving town, the Senate was able to advance a government funding Continuing Resolution (CR) to keep federal government operations running through December 11. The House-passed measure extends funding through December 4, so that will have to be reconciled in September when Members of Congress return.

Speaking of September, the list of items that need Congressional action by the end of next month is long. The federal surface transportation law known as the Highway Bill expires September 30. Although the House Transportation and Infrastructure Committee passed a highway bill reauthorization measure earlier this year, that legislation has not advanced to the House floor. The Senate lags far behind the House in its fashioning of a surface transportation bill, which means an extension past September 30 will be necessary. As we noted last week, the Senate failed to advance its version of a Farm Bill and will be trying to take another run at committee action when the Senate returns mid-September. Farm Bill programs also expire September 30, although the high profile and expensive provisions in the Farm Bill—row crop and dairy subsidies and the Nutrition title—were extended through 2031 as part of last year’s H.R. 1 (One Big Beautiful Bill Act). Chairman Boozman has signaled that a Farm Bill extension addressing all of the other titles in the comprehensive measure will not be necessary until the end of this year.

GOP leadership in both chambers will continue to push for a budget reconciliation bill to address military spending needs, as well as agricultural assistance. The Federation is well positioned if this measure moves forward as this will be the vehicle for supplemental appropriations that will provide $200 million for U.S. hardwood producers. Interestingly, included as part of last week’s Senate passed CR are a few trade and tax provisions which may also provide a base camp for our hardwood relief language  to launch from when budget negotiations begin in earnest following the election. As always, the Federation team continues to work the process with our champions on the Hill and we are hopeful for a positive outcome.