The US federal government shutdown continued this week amid reported discussions among senators to resolve the ongoing closure. Senate Majority Leader John Thune (R-SD) indicated that if there is no resolution, talks could continue into the weekend if there is a "path forward to vote." The current talks this week — reports of which have ranged from optimistic to pessimistic — are taking place following this week's off-cycle elections and growing pressure to open the government.

The IRS recently released frequently asked questions (FAQs) on the reporting of digital asset transactions by brokers, which is required on Form 1099-DA, Digital Asset Proceeds From Broker Transactions, starting with transactions from 1 January 2025. Form 1099-DA will be used by digital asset brokers to report sales of digital assets, including cryptocurrencies and nonfungible tokens (NFTs).

President Trump on 4 November signed two executive orders formalizing commitments made with President Xi of China during a recent bilateral meeting in South Korea, including the reduction of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The White House also earlier highlighted new commitments secured in South Korea to "support American jobs," strengthen US energy and technology leadership and "build the US-Korea maritime partnership."

The Executive Order titled "Modifying the Duties Addressing the Synthetic opioid Supply Chain in the People's Republic of China" underscores China's commitment to take measures to end the flow of fentanyl into the United States, for which the US agreed to reduce the fentanyl-related tariffs on Chinese imports from 20% to 10%, effective 10 November 2025.

The second Executive Order, "Modifying Reciprocal Tariff Rates Consistent with the Economic and Trade Arrangement Between the United States and the People's Republic of China," provides that the US will continue to impose a lower ad valorem rate of 10% on imports from China while trade discussions continue between the two countries. The suspension of the higher ad valorem duty rate is effective beginning 10 November 2025 and will continue until 10 November 2026, although President Trump has retained the right to modify this action. As a result, effective 10 November 2025, the tariff rates on most imports from China will range from 10% to 45%.

The White House also issued a Fact Sheet outlining the broad terms and commitments agreed to by the US and China, in addition to the tariff adjustments. A Global Tax Alert provides details.

The US Supreme Court on 5 November held oral arguments in Trump, et al. v. V.O.S. Selections, Inc., et al., the case challenging the legal basis for President Trump to impose tariffs under IEEPA. The case follows a 29 August decision by the US Court of Appeals for the Federal Circuit, which held that President Trump exceeded his authority under the IEEPA in imposing certain tariffs.

While the timing of a decision is unclear, the expedited process for the case thus far could prompt the Court to issue a decision before the end of 2025. The full audio of the Supreme Court oral argument is here. A full transcript is also available here.

The OECD on 31 October held its seventh annual OECD Tax Certainty Day, releasing the 2024 statistics on Mutual Agreement Procedures (MAPs) and Advance Pricing Agreements (APAs). The 2024 MAP and APA statistics show a continued increase in MAP caseloads and APA applications, with more countries participating and a growing emphasis on dispute prevention and early certainty tools.

The OECD statistics show significant variations on a regional and jurisdictional level. There is also a growing focus on dispute prevention through APAs, including bilateral APAs, and work is being done on non-transfer pricing APAs, including bilateral APAs. A Global Tax Alert provides details.