Industrials Regulatory News and Trends - December 8, 2025

Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.

EPA “confesses error,” urges court to vacate Soot Rule. In a motion filed on November 24 in Commonwealth of Kentucky et al. v. U.S. Environmental Protection Agency et al., the Environmental Protection Agency (EPA) ended its defense of the National Ambient Air Quality Standards (NAAQS) for PM2.5, commonly called the Soot Rule, and urged the US Court of Appeals for the DC Circuit to vacate it. In essence, the agency is siding with the plaintiffs in the case, a coalition of business associations and the Attorneys General from 25 Republican-led states who argue that the rule would raise costs for manufacturers, utilities, and consumers and could hamper the construction of new factories. The rule was finalized in February 2024 and put in place tougher limits on emissions of fine particulates. The agency’s November 24, 2025 motion stated that the rule was finalized “without the rigorous, stepwise process that Congress required” and that the “EPA now confesses error and urges this Court to vacate the Rule.” Eliminating the rule would revert the fine-particulate standard to levels set in 2012. 

One-year tariff exclusions extended to additional products. On November 26, certain industrial and medical products manufactured in China received a one-year extension of tariff exclusions as part of the November 1 US-China trade agreement between Presidents Donald Trump and Xi Jinping. The renewed exclusions affect 14 categories of solar manufacturing equipment, as well as 164 diverse categories, such as automotive air compressors, printed circuit boards, pump components, and electric motors. Tariffs on those products had been extended several times this year and would have expired on November 29. 

FDA withdraws proposed rule requiring cosmetics makers to test talc for asbestos. On November 26, the Food and Drug Administration (FDA) withdrew a proposed rule that would have required manufacturers of talc-containing cosmetic products to test their products – or  the talc components of those products – for asbestos, and to maintain records showing their compliance with the rule. An FDA spokesperson told The New York Times that the agency intends to submit a new, more comprehensive proposed rule, but did not provide further details. Talc is widely used in many industrials processes – for instance, to reduce friction and improve ink adhesion in paper manufacturing – but, with the FDA’s move, attention is turning to its use in products intended for human ingestion, such as pharmaceuticals, candies, dried beans and fruits, and dietary supplements. Starting in 2027, the European Union will ban all uses of talc in cosmetics under the Cosmetics Regulation. The United Kingdom is exploring the possibility of a similar ban.

CBP forced labor enforcement continues. US Customs and Border Protection (CBP) has issued its fifth Withhold Release Order (WRO) for 2025, directing the detention of garments, apparel, and textiles manufactured in Mauritius by Firemount Group Ltd., based on information that reasonably indicates the use of forced labor in violation of 19 U.S.C. § 1307. WROs are a powerful tool that can immediately disrupt shipments and merchandising plans, with downstream impacts on inventory, retail operations, and brand commitments. Currently, CBP is overseeing 54 WROs and nine Findings under § 1307. 

Eleview settlement highlights US enforcement of export control rules on Russia. A freight forwarding business based in Virginia, as well as its owner, chief executive officer, and an employee, have pled guilty to conspiracy to violate the Export Control Reform Act over schemes to transship more than USD6 million worth of sensitive United States technology to Russia through third countries and to provide false information on export control documentation submitted to the US government. The outcome underscores the US government’s intent to investigate conduct that threatens US national security and economic interests while also serving as a case study in cargo risk detection and control. See our alert.

Another legal challenge for NESE pipeline. In mid-November, a coalition of environmental groups asked the US Court of Appeals for the Second Circuit to review the New York State Department of Environmental Conservation's November 7 decision that granted a crucial water quality certificate for the Northeast Supply Enhancement (NESE) pipeline project. The 37-mile NESE pipeline would route gas from Pennsylvania through New Jersey and New York, passing in part beneath the ocean floor near Staten Island to deliver natural gas to 2.3 million New York City households. The controversial project has faced years of permit rejections from both New Jersey and New York, and was cancelled by its developer, the Williams Companies, before New York Governor Kathy Hochul supported it earlier this year. In a statement on November 7, Governor Hochul stated that the pipeline is one aspect of New York's "all-of-the-above approach" and pointed to the “continued commitment to renewables and nuclear power to ensure grid reliability and affordability.” The new lawsuit follows earlier legal challenges brought by the environmental nonprofit Natural Resources Defense Council (NRDC): one charging that the Federal Energy Regulatory Commission improperly reissued a certificate for the pipeline in September and a second disputing both New York and New Jersey’s permit approvals in federal court. Last month, New Jersey Governor-elect Mikie Sherrill expressed skepticism about the value of the NESE project, stating that it “does nothing to lower electric bills for New Jersey residents.” Separately, the Williams Companies have withdrawn the water permit application for the Constitution Pipeline, a USD1 billion underwater project intended to move natural gas from Pennsylvania to Albany, New York for routing via extant pipelines to New England. 

Germany calls on EU to soften the 2035 internal-combustion engine phaseout. In a November 28 letter to European Commission President Ursula von der Leyen, German Chancellor Friedrich Merz asked that the European Union (EU) ease its 2035 deadline for registering new internal-combustion vehicles, arguing for “a reconciliation of competitiveness and climate action” and warning of risks to Germany’s auto industry. The letter is the latest step in a broader push by the European auto industry and its supporters for greater flexibility in ICE reductions and deadlines. Earlier this year, European automakers urged the EU to make allowance for internal combustion engines running on CO2 neutral fuels; in September the EU fast tracked a review of the policy, with details due December 10. On November 26, EU Executive Vice President Stephane Sejourne said the coming update will bring greater “flexibility” to European automakers, adding that “Europe is ready to activate all levers to make the European automotive industry successful.”

Russia turned away from UN shipping council. On November 28, for the third straight year, Russia did not receive enough votes to rejoin the International Maritime Organization (IMO) Council. The IMO is the United Nations agency responsible for measures to improve the safety and security of international shipping and to prevent pollution from ships. One hundred thirteen votes are needed to join the Council; Russia received 47. The IMO election results, Reuters Maritime observed, reflect the “continued global stance against Russian maritime practices.” Norway, the United Kingdom, and Ukraine, opponents of Russia’s candidacy, all pointed to concerns about Russia’s so-called shadow fleet – oil tankers often sailing under flags of convenience to circumvent economic sanctions. Russia lost its IMO seat after the invasion of Ukraine. It retains its observer status at the IMO and may take part in the workings of technical committees, but, without a Council presence, does not have voting rights. 

USPP position paper on chemical recycling: many potential benefits, but clear standards are needed. The U.S. Plastics Pact (USPP), a consortium of businesses, nonprofits, government agencies, research institutions, and government agencies, has issued Position on the Role of Physical and Chemical Recycling in a Circular Economy for Plastic Packaging, a paper exploring the potential benefits and associated concerns of chemical recycling. Noting the accelerating efforts to scale up the use of physical and chemical recycling of plastics, the USPP paper begins by asserting its support for “the responsible integration of physical and chemical recycling within a broader system designed to advance a circular economy by reducing plastic waste and reliance on virgin plastic.” Physical and chemical recycling, USPP states, “offer promising solutions for hard-to-recycle plastic formats such as flexible films, food-contact packaging, medical materials, and textiles,” but, at present, “typically carry greater environmental impacts and are not yet fully scaled.” The paper calls for the establishment of clear policy frameworks, robust safeguards, and science-based performance standards to help recycling “play a meaningful role in reducing plastic waste and virgin plastic use while protecting environmental and human health outcomes.”