On July 23, 2025, the White House unveiled “Winning the AI Race: America’s AI Action Plan,” which provides for federal policy actions the Trump Administration intends to take related to Artificial Intelligence (AI). The proposed actions fall within three pillars: “Accelerating Innovation,” “Building American AI Infrastructure,” and “Leading in International Diplomacy and Security.” The third pillar previews changes to export controls to bolster collaboration with allies while addressing national security threats from potential adversaries. The Departments of Commerce and State are tasked with implementing concrete measures under the Action Plan. The Action Plan also highlights the Trump Administration’s ongoing focus on heightened export restrictions and enforcement related to China. 

Recommended Export Policy Actions in the Action Plan

The Action Plan directs federal agencies to revise export controls related to AI as follows:

• Work with industry to identify full-stack AI export packages that could be exported to allied countries under U.S.-approved security requirements to bolster allied country use of American technology.
• Pursue creative approaches to enforcement in relation to diversion of advanced U.S.-origin AI compute, including through increased end-use and location monitoring.
• Develop new export controls on semiconductor manufacturing sub-systems to supplement controls on major systems necessary for semiconductor manufacturing.
• Use enforcement tools, including the Foreign Direct Product Rule (FDPR) and secondary tariffs, to encourage international alignment on export controls for sensitive AI technologies.
• Develop new technology protection measures, such as plurilateral controls implemented with key allies for the AI tech stack.

Taken together, the policy actions pursue two main goals: additional collaboration with allies to promote American AI supremacy and economic benefits to U.S. companies; and heavy restrictions on U.S. adversaries, particularly China, accessing AI and semiconductor technologies and tools.

Enforcement Focus

The Action Plan encourages vigorous export compliance enforcement, with a focus on circumvention risks and non-U.S. companies taking advantage of differences in local laws. Previously, the Commerce Department has used the FDPR in the advanced computing and semiconductor manufacturing contexts to expand the reach of U.S. export controls. The Action Plan contemplates similar extraterritorial actions as part of enforcement efforts.

Key members of and recent nominees to the Commerce Department have reiterated this focus on enforcement. The nominee for Assistant Secretary of Commerce for Export Enforcement recently stressed his commitment to “vigorous and fair enforcement” and consideration of “the full range of penalties available” for export violations. Similarly, Commerce Secretary Lutnick has also pledged support for heightened enforcement efforts related to China.  Enforcement remains a key tool to better implement U.S. export policy.

What’s Next?

• Companies should keep a close eye on new regulations from the Department of Commerce in the coming months to implement the Action Plan. These regulations likely will impose additional export licensing requirements on some activities while also opening the door for exports to allied countries. 
• The Administration previously indicated it would be releasing a new rule to replace the Biden-era AI Diffusion Rule, which may be another avenue to implement the Action Plan’s policy recommendations. 
• Companies may want to seek out opportunities to shape AI policy and related regulations by participating in industry outreach activities described in the Action Plan.
• Diversion and circumvention are top of mind, and companies should ensure their compliance programs properly address these risks to limit enforcement exposure.
• The U.S-China relationship is in flux, with media reporting that some export controls on chips provided to China could be lifted as part of ongoing trade negotiations, while the administration promises to ratchet up restrictions on and enforcement of China trade. Regular monitoring for compliance updates is a must-have as developments unfold. 

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