Economy

Oracle, Amazon, Exxon Mobil Urge Trump to Halt Export Rule: Is US Trade at Risk?

Lobby group urges Trump to suspend a rule halting billions in exports, risking trade balances and national security.

October 21, 2025, 9:40 AM

United States President Donald Trump sitting in a high-backed yellow chair, wearing a dark blue suit and bright red tie, looking directly at the camera.

This formal portrait captures United States President Donald Trump seated in the White House for a significant diplomatic meeting on international affairs. By noamgalai / Shutterstock.com.

Executive Summary

The National Foreign Trade Council (NFTC) is urging the Trump administration to immediately suspend the “Affiliates Rule,” claiming it has halted billions in U.S. exports and is causing nations to remove U.S. companies from supply chains.

The “Affiliates Rule,” implemented on September 29, prohibits American companies from shipping goods and technology to firms at least 50% owned by sanctioned entities, which the NFTC states contradicts the goal of reducing the trade deficit and could weaken national security.

The NFTC also accused the Commerce Department of substantially slowing and temporarily halting the processing of thousands of export license applications, particularly for Chinese customers, with billions of dollars worth accumulating.

The Story So Far

The National Foreign Trade Council’s (NFTC) lobbying efforts are a direct response to the Trump administration’s “Affiliates Rule,” implemented on September 29, which prohibits U.S. companies from shipping goods and technology to firms at least 50% owned by sanctioned entities. This rule was advocated by China hawks in Washington to prevent sanctioned Chinese companies from using unsanctioned subsidiaries to access restricted technology, and it comes amidst broader industry concerns over the Commerce Department’s substantial slowdown in processing other export license applications, particularly for Chinese customers.

Why This Matters

The Trump administration’s “Affiliates Rule” and delays in export license processing are causing an immediate halt to billions in U.S. exports, directly undermining trade deficit reduction goals and prompting global supply chains, led by China, to exclude American components, thereby posing risks to both economic stability and national security amid mounting industry pressure.

Who Thinks What?

The National Foreign Trade Council (NFTC), representing major U.S. firms, argues that the “Affiliates Rule” and delays in export license processing have immediately paused billions in U.S. exports, prompting China and other nations to exclude American companies from supply chains, thus risking trade balances and weakening national security.

China hawks in Washington advocated for the “Affiliates Rule” to prevent sanctioned Chinese companies from using unsanctioned subsidiaries to access restricted technology, implying the rule is a necessary measure to protect U.S. national security and technological interests.

A prominent lobbying group representing major U.S. firms such as Oracle, Amazon.com, and Exxon Mobil is urging the Trump administration to immediately suspend a rule that it claims has halted billions of dollars in U.S. exports. The National Foreign Trade Council (NFTC) argues that the “Affiliates Rule,” implemented on September 29, is prompting China and other nations to remove U.S. companies from their supply chains, posing a risk to both trade balances and national security.

In an October 3 letter to President Trump, NFTC President Jake Colvin stated the rule has caused an “immediate pause of billions in U.S. exports,” directly contradicting the administration’s goal of reducing the trade deficit. The rule prohibits American companies from shipping goods and technology to firms at least 50% owned by sanctioned entities. Colvin also warned that the rule could weaken U.S. national security by encouraging global supply chains, led by China, to exclude American components.

Industry Pushback

The NFTC’s letter highlights significant private sector opposition to the controversial measure. The rule was advocated by China hawks in Washington who sought to prevent sanctioned Chinese companies from using unsanctioned subsidiaries to access restricted technology. The White House and Commerce Department did not respond to requests for comment regarding the letter, and the NFTC declined to comment.

Export License Delays

Beyond the Affiliates Rule, the NFTC also accused the Commerce Department of substantially slowing and even temporarily halting the processing of export license applications, particularly for Chinese customers. The group reported that “thousands of licenses worth billions of dollars” are currently accumulating at the department. This aligns with an August Reuters report that thousands of global export license applications, including those for China, were in limbo due due to internal issues at the agency.

The NFTC’s intervention underscores mounting industry pressure on the Trump administration regarding its export control policies, particularly those targeting China, amidst concerns over their economic and strategic repercussions.