The Stile Newsletter Issue # 899

ISSUE #899 - 07/18/2025

• USTR Announces Initiation of Section 301 Investigation of Brazil’s Unfair Trading Practices

• FDA Issues Warning Letters to Firms Marketing Products Containing 7-Hydroxymitragynine

• Federal Register Notices

• FDA Approves Gardenia (Genipin) Blue Color Additive While Encouraging Faster Phase-Out of FD&C Red No. 3

• America First Trade Win: USDA Blocks Additional Specialty Sugar Imports

• U.S. Department of Commerce Announces Withdrawal from 2019 Suspension Agreement on Fresh Tomatoes from Mexico

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USTR Announces Initiation of Section 301 Investigation of Brazil’s Unfair Trading Practices - U.S. Trade Representative

WASHINGTON — Today, the Office of the United States Trade Representative initiated an investigation of Brazil under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the Government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce.

“At President Trump’s direction, I am launching a Section 301 investigation into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators,” said Ambassador Greer. “USTR has detailed Brazil’s unfair trade practices that restrict the ability of U.S. exporters to access its market for decades in the annual National Trade Estimate (NTE) Report. After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action."

Background

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b) of the Trade Act, the Trade Representative may self-initiate an investigation under Section 301.

A Section 301(b) investigation examines whether the acts, policies, or practices are unreasonable or discriminatory and burden or restrict U.S. commerce. Considering the specific direction of the President, and the advice of the inter-agency Section 301 Committee, the United States Trade Representative has initiated an investigation. The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with Brazil in connection with the investigation. USTR will hold a hearing in connection with this investigation on September 3, 2025. To be assured of consideration, interested persons should submit written comments, requests to appear at the hearing, along with a summary of the testimony, by August 18, 2025. USTR will hold a hearing in connection with this investigation on September 3, 2025.

As set out in the Federal Register notice, the investigation relates to a number of trading practices, including:

• Digital trade and electronic payment services: Brazil may undermine the competitiveness of U.S. companies engaged in these sectors, for example, by retaliating against them for failing to censor political speech or restricting their ability to provide services in the country;
• Unfair, preferential tariffs: Brazil accords lower, preferential tariff rates to the exports of certain globally competitive trade partners, thereby disadvantaging U.S. exports;
• Anti-corruption enforcement: Brazil’s failure to enforce anti-corruption and transparency measures raises concerns in relation to norms relating to fighting bribery and corruption;
• Intellectual property protection: Brazil apparently denies adequate and effective protection and enforcement of intellectual property rights, harming American workers whose livelihoods are tied to America’s innovation- and creativity-driven sectors;
• Ethanol: Brazil has walked away from its willingness to provide virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff on U.S. ethanol exports; and
• Illegal deforestation: Brazil appears to be failing to effectively enforce laws and regulations designed to stop illegal deforestation, thereby undermining the competitiveness of U.S. producers of timber and agricultural products.

A copy of the Federal Register Notice is available here.

A docket for comments regarding the investigation will be available here.

A docket for requests to appear at the public hearing to be held in connection with this investigation will be available here.

FDA Issues Warning Letters to Firms Marketing Products Containing 7-Hydroxymitragynine - Food & Drug Administration

Alkaloid known as 7-OH is not a lawful dietary supplement, food additive, or ingredient in any approved drug

The U.S. Food and Drug Administration today announced seven recent warning letters sent to companies for illegally marketing products containing 7-hydroxymitragynine, also known as 7-OH.1 This action reflects the Agency’s growing concern around novel potent opioid products being marketed to U.S. consumers and sold online and in smoke shops, gas stations, and corner stores. While 7-OH occurs naturally in trace amounts in kratom, the Agency’s letters focus on concentrated 7-OH products such as tablets, gummies, drink mixes, and shots, which may be dangerous. 

7-OH is not lawful in dietary supplements and cannot be lawfully added to conventional foods. Additionally, there are no FDA-approved drugs containing 7-OH, and it is illegal to market any drugs containing 7-OH. Consumers who use 7-OH products are exposing themselves to products that have not been proven safe or effective for any use.

The warning letters address the illegal marketing of products containing 7-OHExternal Link Disclaimer. These letters specifically focus on products containing 7-OH as an added ingredient or enhanced levels of 7-OH. Some products are adulterated conventional foods or dietary supplements because 7-OH does not meet the relevant safety standard. Others are unapproved new drugs with unproven claims such as relieving pain and managing anxiety.

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Aluminum Foil From the Republic of Türkiye: Final Results of Countervailing Duty Administrative Review; 2022
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Methylene Diphenyl Diisocyanate From the People's Republic of China: Postponement of Preliminary Determination in the Less-Than-Fair-Value Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: Hexamine (Hexamethylenetetramine) From China, Germany, India, and Saudi Arabia; Revised Schedule for the Subject Investigations
• Certain Nanolaminate Alloy Coated Metal Parts and Products Containing the Same; Commission Decision Not To Review an Initial Determination Amending the Complaint and Notice of Investigation
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Float Glass Products From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
• Float Glass Products From Malaysia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Cameras, Camera Systems, and Accessories Used Therewith; Notice of Request for Submissions on the Public Interest
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Float Glass Products From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
• Float Glass Products From Malaysia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Cameras, Camera Systems, and Accessories Used Therewith; Notice of Request for Submissions on the Public Interest
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Overhead Door Counterbalance Torsion Springs From the People's Republic of China: Preliminary Affirmative Determination of Critical Circumstances, in Part, in the Countervailing Duty Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: Steel Threaded Rod From China
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Refined Brown Aluminum Oxide From the People's Republic of China: Continuation of Antidumping Duty Order
• Utility Scale Wind Towers From Malaysia: Amended Final Results of Countervailing Duty Administrative Review; 2022
• Hexamethylenetetramine From the People's Republic of China: Final Affirmative Countervailing Duty Determination
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Chassis and Subassemblies Thereof From Mexico, Thailand, and the Socialist Republic of Vietnam: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations
• Hexamethylenetetramine From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Blood Flow Restriction Devices With Rotatable Windlasses and Components Thereof; Notice of a Commission Determination Not To Review an Initial Determination Granting a Joint Motion for Termination of the Enforcement Proceeding Based on Settlement; Termination of the Enforcement Proceeding

FDA Approves Gardenia (Genipin) Blue Color Additive While Encouraging Faster Phase-Out of FD&C Red No. 3 - FDA

Today (7/14/25), the U.S. Food and Drug Administration announced it had granted Gardenia Blue Interest Group’s (GBIG) color additive petition to use the color gardenia (genipin) blue in various foods, at levels consistent with good manufacturing practice. It is the fourth color derived from natural sources approved by the FDA for use in foods in the last two months.

The FDA action is in line with U.S. Department of Health and Human Services Secretary Robert F. Kennedy, Jr.’s priority to work with industry to phase out the use of all synthetic, petroleum-based dyes from the nation’s food supply as part of the administration’s broader effort to Make America Healthy Again.

Since Secretary Kennedy announced a series of measures in April to work with industry to phase out petroleum-based synthetic dyes in food, about 40 percent of the food industry has committed to a voluntary phase-out of such dyes.

“Every day, children are exposed to synthetic chemicals in food that serve no purpose and threaten their health,” Secretary Kennedy said. “The FDA’s approval of gardenia blue shows we’re finally putting kids first. Thanks to Dr. Marty Makary’s bold leadership, we’re cutting through industry influence and taking decisive action to Make America Healthy Again.”

Gardenia (genipin) blue is derived from the fruit of the gardenia, a flowering evergreen. The FDA has approved the color additive for use in sports drinks, flavored or enhanced non-carbonated water, fruit drinks and ades, ready-to-drink teas, hard candy, and soft candy.

“This expedited timeline underscored our serious intent to transition away from petroleum-based synthetic dyes in the food supply, said FDA Commissioner Marty Makary, M.D., M.P.H. “Now, by expanding the palette of available colors derived from natural sources, food manufacturers have a variety of options available that will make it easier to end their use of petroleum-based dyes.”

The three colors derived from natural sources approved in May were: galdieria extract blue, a blue colorant derived from the unicellular red algae Galdieria sulphuraria; calcium phosphate, a white powder; and butterfly pea flower extract, a blue color that can be used to achieve a range of shades including bright blues, intense purple, and natural greens.

Under section 721 of the Federal Food, Drug, and Cosmetic Act, color additives must be FDA-approved before they may be used in foods. The FDA determines whether a color additive is safe to use by considering the projected human dietary exposure to the color additive, the additive’s toxicological data, and other relevant information, such as published literature. Once the FDA approves a color additive, any manufacturer can use the coloring in accordance with the conditions of use.

In addition to approving a new color additive, the FDA also announced today that it had sent a letter to manufacturers encouraging them to accelerate the phase-out of FD&C Red No. 3 in foods, including dietary supplements, sooner than the January 15, 2027, required deadline. This earlier phase-out was another of the series of measures introduced by Secretary Kennedy in April.

“The FDA believes that accelerating the phase out of the use of FD&C Red No. 3 in foods will help further the goal of Making America Healthy Again,” the FDA said in the letter.

On Friday, July 11, Consumer Brands—a national trade association for manufacturers of consumer packaged goods—announcedExternal Link Disclaimer their voluntary commitment to encourage the makers of America’s food and beverage products to remove certified Food, Drug & Cosmetic (FD&C) colors from products served in schools nationwide by the start of the 2026–2027 school year.

America First Trade Win: USDA Blocks Additional Specialty Sugar Imports - FDA

(Washington, D.C., July 14, 2025) — Today, the U.S. Department of Agriculture, in alignment with Secretary Rollins’ Farmers First policies, announced no additional imports of specialty sugars beyond what U.S. international obligations dictate.

“Production agriculture has seen devastating impacts from natural disasters, Biden-era policies, and extraordinary increases to cost of production,” said Deputy Secretary of Agriculture Stephen Alexander Vaden. “Worse, a trade landscape that, over the last four years, favored foreign competitors over America’s farmers, ranchers, and producers, lead to what is projected to be the largest agricultural trade deficit on record. President Trump‘s America First approach is tipping the scales back in favor of American agriculture. Although sugar policy is uniquely designed to protect sugar farmers from the dumping of heavily subsidized foreign sugar, those farmers are not immune from the same distress facing other agricultural producers. Over the last 20 years, sugar imports have more than doubled and producers have lost 15% of the U.S. sugar market to imports, leading to closures of mills and processors—economic and financial losses that impact farmers, rural communities, and consumers. This decision begins to right the ship.”

U.S. Department of Commerce Announces Withdrawal from 2019 Suspension Agreement on Fresh Tomatoes from Mexico - International Trade Administration

WASHINGTON, D.C. – Today, the U.S. Department of Commerce announced it is withdrawing from and terminating the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico (the 2019 Agreement). Commerce is withdrawing under Section XI.B of the 2019 Agreement which explicitly allows Commerce to take such an action with 90-days’ written notice.

Now that the 2019 Agreement is terminated, Commerce is issuing an antidumping duty order, resulting in duties of 17.09 percent on most imports of tomatoes from Mexico. Antidumping duties are calculated to measure the percentage by which Mexican tomatoes have been sold in the United States at unfair prices.

“Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” said Secretary of Commerce Howard Lutnick. “This rule change is in line with President Trump’s trade policies and approach with Mexico.” 

Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for rigorously enforcing U.S. trade laws and does so based on factual evidence provided on the record. Commerce currently maintains 768 antidumping and countervailing duty orders which provide relief to American companies and workers impacted by unfair trade practices.

Antidumping and countervailing duty orders provide a critical tool for U.S. industries to seek relief from the harmful effects of the unfairly priced imports, including where foreign companies sell goods in the U.S. market below production costs or below prices in their home markets.

BACKGROUND 

The domestic fresh tomatoes industry petitioned for relief on March 29, 1996 because it claimed it was being materially injured by dumped Mexican imports. Over the last 27 years, there have been five suspension agreements (1996, 2002, 2008, 2013, and 2019). The 2019 Agreement was entered into under Section 734(c) of the Tariff Act of 1930, as amended, pursuant to which it must “eliminate the injurious effect of Mexican tomato imports.” The Mexican signatories agreed to abide by the terms of the 2019 Agreement, including to sell at or above certain minimum selling prices and to eliminate at least 85 percent of the dumping found in the underlying investigation on each entry of tomatoes. The 2019 Agreement contained a duration section (Section XI) which allows Commerce, an individual Signatory, or the collective Signatories, to withdraw from the 2019 Agreement with 90-days’ notice. Commerce and the Mexican Signatories have used this provision previously to initiate a withdrawal from and termination of past suspension agreements.

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