Canada has withdrawn its digital services tax to restart stalled trade negotiations with the US, following threats of new tariffs from US President Trump. The two countries now aim to reach a deal by July 21, with Canada pledging to repeal the tax entirely.
President Donald Trump said he likely won't extend the July 9 deadline for countries to finalize trade deals with the US and avoid increased tariffs, despite having the flexibility to do so. His remarks contrast with Treasury Secretary Scott Bessent's assessment that some agreements might not be ready by July 9 and that the Trump administration "could have trade wrapped up by Labor Day."
The Justice Department has made denaturalization a top enforcement goal for its Civil Division, according to a memo directing attorneys to seek the revocation of citizenship from naturalized Americans tied to certain crimes or past misrepresentations. Some legal experts say the use of civil litigation and broad discretion for US attorneys in such cases threatens due process and could create unequal classes of citizenship. Meanwhile, the department on Friday fired at least three of its lawyers involved in criminal prosecutions stemming from the Jan. 6, 2021, riot at the US Capitol, sources said.
The US Supreme Court agreed to review a challenge to federal limits on coordinated spending between political parties' committees and individual campaigns, aiming to overturn a 2001 decision in favor of the restrictions. The challenge -- which is supported by the Federal Election Commission under the Trump administration -- was filed by the National Republican Senatorial Committee, the National Republican Congressional Committee, and the 2022 senatorial campaigns of now-Vice President JD Vance and former Rep. Steve Chabot, R-Ohio.
All 22 major US banks passed the Federal Reserve's annual stress test, demonstrating they could endure a severe recession scenario involving over $550 billion in losses. The 2025 test aimed to reflect realistic current economic risks and market dynamics, a departure from last year's harsher assumptions. The strong results indicate resilience in the banking system and could allow banks to return more capital to shareholders through dividends and buybacks.
Senate banking committee Chair Tim Scott, R-S.C., said the Senate parliamentarian has determined that a proposal to reduce the Consumer Financial Protection Bureau's funding can be subject to a simple majority vote. That would clear the way for the proposal's inclusion in the tax and spending megabill. The measure would lower the cap on CFPB funding transfers from the Federal Reserve System from 12% of the Fed's total operating expenses in 2009 to about 6.5%.
The latest version of a measure to tax the legal payouts that go to the litigation financing sector would impose a tax of 31.8%, down from the originally proposed 40.8%, as part of the tax and spending megabill moving forward in the Senate. The proposal retains provisions that would eliminate safeguards for tax-exempt organizations and prohibit litigation financiers from using losses to offset gains.
This One-Hour Briefing from PLI is designed to provide a concise overview of key changes in the regulatory and policy landscape related to corporate political activity; environmental, social and governance -- or ESG -- issues; and federal agency enforcement in the first six months of the Trump administration. Faculty will analyze recent action by the Securities and Exchange Commission and the Department of Justice as well as relevant executive orders and other executive action, federal legislation and shareholder proposals regarding corporate political activity.
While some of these changes were temporary as we waited out the end of the COVID-19 era, other aspects of work might forever be altered. Employment litigation and litigation risks have and will continue to evolve along with the way we work. This week's free download from PLI Press, "Legal Claims and Emerging Trends Through the Pandemic and Beyond," examines trends in employment discrimination litigation as employers continue to navigate these uncharted waters.
US District Judge Loren AliKhan issued a permanent injunction against President Donald Trump's executive order aimed at sanctioning Susman Godfrey by limiting the law firm's access to federal buildings and contracts and suspending its employees' security clearances. The executive order "is unconstitutional from beginning to end," AliKhan wrote in her ruling, which marks the fourth decision in favor of law firms that have challenged such orders issued by Trump.
