The US Congress is now out of session until the new year. Lawmakers failed to address the expiration of enhanced Affordable Care Act (ACA) premium tax credits and made little headway on 9 of 12 appropriations bills that face a 30 January deadline. Both the ACA credits issue and appropriations deadline could provide a vehicle for a bipartisan tax, trade and/or health care package. It is unclear at this time what tax items could be pursued.

House Representatives Steve Horsford (D-NV) and Max Miller (R-OH) on 20 December released a bipartisan discussion draft on the taxation of digital asset activities. According to a press release, the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act discussion draft "targets unnecessary compliance challenges, closes major anti-abuse gaps, and aligns the taxation of digital assets with long-standing tax principles already applied to stocks, commodities, and other financial assets." The full text of the PARITY Act discussion draft is here.

The Office of the US Trade Representative (USTR) on 23 December 2025 published a Notice of Action in its Section 301 investigation of China's acts, policies, and practices related to targeting of the semiconductor industry for dominance. The USTR has determined that China's acts, policies and practices are actionable under the statute and announced an 18-month phase in of tariffs on semiconductors and related products. Effective 23 December, the initial tariff rate will be 0% and will increase to a yet-to-be-determined rate on 23 June 2027. A WCEY Alert provides details.

On 18 December, the Office of the USTR and the Commerce Department published a Federal Register Notice outlining tariff modifications announced in the US-Switzerland Joint Statement on 14 November 2025. The Notice confirms that the US will apply the higher of either the applicable US most-favored-nation rate or 15%, and that the US will exclude certain agricultural goods, unavailable natural resources, aircraft and aircraft parts, and generic pharmaceuticals from country-specific tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

Looking ahead, the US Supreme Court is expected to issue its opinion in the consolidated seminal trade tariff cases (President Donald J. Trump, et al. v. V.O.S Selections Inc., et al.), addressing whether the International Emergency Economic Powers Act (IEEPA) grants the President authority to impose tariffs during national emergencies.

The central question before the Supreme Court is whether the President can unilaterally levy tariffs under IEEPA, or whether this authority remains with Congress. The Court could definitively uphold or reject broad-based tariff authority under IEEPA; alternatively, the Court could strike a middle ground that permits tariffs under IEEPA in more limited circumstances.

Regardless of the Court's ruling, the Trump Administration remains committed to its America First Trade Policy and retains other legal mechanisms to impose tariffs under existing US trade law. A WCEY Alert provides details.