Executive Order 14148: Impact on Sanctions and Trade

On January 20, 2025, shortly after his inauguration, President Donald Trump signed the “Initial Rescissions of Harmful Executive Orders and Actions” Executive Order (EO) 14148. In order to “restore common sense to the Federal Government and unleash the potential of the American citizen,” EO 14148 rescinded 67 Executive Orders and 11 Presidential Memoranda from the Biden administration.

The revocations focused extensively on policies related to diversity, equity, and inclusion, the Covid-19 pandemic, climate, and immigration. However, EO 14148 also targeted presidential actions related to international trade and sanctions.

IMPACT OF EO 14148 ON SANCTIONS PROGRAMS

Several rescissions implemented by President Trump’s EO 14148 directly affected sanctions. Specifically, EO 14148 rescinded:

EO 14022 of April 1, 2021 (Termination of Emergency with Respect to the International Criminal Court) – EO 14022 had terminated the national emergency Trump had declared in EO 13928 of June 11, 2020 (Blocking Property of Certain Persons Associated with the International Criminal Court), which imposed sanctions on individuals involved with the International Criminal Court (“ICC”). Trump’s EO had targeted the ICC prosecutor and other ICC personnel for investigating actions of the United States military and intelligence in or relating to Afghanistan. Additionally, the EO had declared a national emergency based on the threat of the ICC’s efforts to investigate, arrest, detain, or prosecute any personnel of the United States and allied countries without the consent of those countries’ governments. On April 1, 2021, Biden then terminated that EO. Although Trump’s EO 14148 revoked Biden’s action, it did not revive the sanctions against the previously sanctioned individuals.^[1]

EO 14115 of February 1, 2024 (Imposing Certain Sanctions on Persons Undermining Peace, Security, and Stability in the West Bank) – EO 14115 imposed sanctions on individuals and entities undermining peace, security, and stability in the West Bank. Biden issued EO 14115 after finding that “high levels of extremist settler violence, forced displacement of people and villages, and property destruction ha[d] reached intolerable levels and constitute[d] a serious threat to the peace, security, and stability of the West Bank and Gaza, Israel, and the broader Middle East region.” The order had authorized the blocking of property and interests in property of foreign persons determined to be responsible for or complicit in actions such as violence targeting civilians, forced displacement, property destruction, and seizure or dispossession of property by private actors. It had also targeted those committing or posing a risk of committing acts of terrorism affecting the West Bank. EO 14115 was not unusual or controversial in terms of the violent conduct targeted, but it was meaningful for policy reasons – particularly in signaling no ally is above the law and acknowledging basic Palestinian rights.

• As a result of Trump’s rescission of Biden’s EO 14115, the U.S. Department of the Treasury's (“Treasury”) Office of Foreign Assets Control (OFAC) removed all persons previously designated under the West Bank program from OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN List”), including dozens of violent extremists and related organizations. However, EO 14148 did not automatically impact the visa restrictions that the U.S. State Department had announced in December 2023 against individuals believed to have been involved in undermining peace, security or stability in the West Bank.

The Presidential Memorandum of January 14, 2025 (Certification of Rescission of Cuba’s Designation as a State Sponsor of Terrorism and Revocation of National Security Presidential Memorandum 5) – In early 2025, President Biden rescinded Cuba’s designation as a State Sponsor of Terrorism (SST) and revoked a 2017 National Security Presidential Memorandum (“NSPM-5”) issued by then-President Trump that had banned U.S. transactions with certain Cuban entities and reinforced the U.S. embargo on Cuba.

• President Trump’s rescission of the Presidential Memorandum of January 14, 2025, in effect reinstated Cuba’s designation as an SST, which Trump had announced at the end of his first presidency. The designation of Cuba as an SST carries additional sanctions implications, including penalties for individuals and countries engaging in certain trades with Cuba, restrictions on U.S. foreign assistance, and bans on certain exports. EO 14148 effectively also reinstated restrictions imposed or reinforced during Trump’s first presidency, thanks to NSPM-5. The Presidential Memorandum had laid the foundations for restrictions on U.S. individuals and entities conducting certain financial transactions with certain Cuban entities on a restricted list.
• Importantly, on January 14, 2025, the Biden administration provided a written report to the U.S. Congress stating that suspension of the private right of action under the Helms Burton Act Title III was necessary to the national interest of the U.S. and that it would expedite a transition to democracy in Cuba. A letter to Congress revoking this decision was also issued, so there is still a private right of action under Title III.

IMPACT OF EO 14148 ON THE ENERGY SECTOR

Several rescissions implemented by President Trump’s EO 14148 will have an impact on the energy sector, both domestic and international. Specifically, EO 14148 rescinded:

EO 13990 of January 20, 2021 (Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis) – EO 13990, among other things, had revoked a March 2019 permit to construct, connect, operate, and maintain pipeline facilities at the international border of the United States and Canada (called the “Keystone XL pipeline”). EO 13990 had also revoked several executive orders from the first Trump administration, including EO 13795 of April 28, 2017 (Implementing an America-First Offshore Energy Strategy) and EO 13868 of April 10, 2019 (Promoting Energy Infrastructure and Economic Growth). Both Trump-era EOs had the long-term goal of reducing reliance on foreign oil and gas and boosting U.S. energy independence.

• The rescission of EO 13990 reversed several directives from the Biden administration aimed at reducing pollution from fossil fuels. The rescission of this EO set the stage for a renewed focus on U.S. fossil fuel production that could lead to shifts in global fossil fuel supply dynamics.
• As far as the repeal of Biden’s decision to revoke Keystone XL’s permit, which was also achieved through EO 13990, it is unclear whether the project will be revived. The 1,200-mile pipeline project, which was intended to transport crude oil from Alberta, Canada to Nebraska, was strongly opposed by the climate movement and was ultimately halted by then-President Biden in 2021. Biden’s decision was severely attacked by Trump and several Republican Senators, who blamed it for the U.S.’s increased reliance on imports of crude oil from other countries, like Venezuela and the Middle East. Despite Trump’s express intent to resurrect the Keystone XL pipeline, framing it as a key element of his pro-fossil-fuel agenda, it appears that critical components of the project have been dismantled through the years, making its revival highly unlikely. Nevertheless, Trump’s desire to revive Keystone XL aligns with his overall pro-fossil-fuel and pro-U.S.-energy-independence

The Presidential Memoranda of March 13, 2023 (Withdrawal of Certain Areas Off the United States Arctic Coast of the Outer Continental Shelf from Oil or Gas Leasing) and January 6, 2025 (Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil or Natural Gas Leasing) – In 2023 and early 2025, citing environmental and economic concerns, President Biden withdrew hundreds of millions of acres of the United States Outer Continental Shelf from future oil and natural gas drilling to protect the coastal and marine environments. These measures stemmed from the view that the environmental and economic risks that would result from drilling in these areas outweighed any limited fossil fuel resource potential.

• The rescission of the Presidential Memoranda of March 13, 2023, and January 6, 2025, will restore leasing for oil and gas drilling to certain areas in the Atlantic and Pacific Oceans and the Gulf of Mexico, as well as the northern Bering Sea, for a total of more than 625 million acres. Restoring access to such large, potentially productive areas might boost the country’s oil and gas industry's flexibility and add a sizable amount of spare productive capacity.

The implications on the energy sector of EO 14148 align with several EOs that followed, such as EO 14156 (Declaring a National Energy Emergency), EO 14153 (Unleashing Alaska’s Extraordinary Resource Potential), and EO 14154 (Unleashing American Energy).^[2] All these actions aim at bolstering U.S.’s energy independence and economic growth by prioritizing fossil fuel development and reducing environmental regulations to achieve energy dominance.

IMPACT OF EO 14148 ON THE SCIENCE AND TECHNOLOGY SECTOR

Several rescissions implemented by President Trump’s EO 14148 will have an impact on the science and technology sector, both domestic and international. Specifically, EO 14148 rescinded:

EO 14110 of October 30, 2023 (Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence) – EO 14110 had established a comprehensive framework to guide the responsible development and deployment of artificial intelligence (“AI”) with an emphasis on enhancing international cooperation while tightening restrictions on AI exports to foreign competitors. Specifically, EO 14110 had directed the U.S. Department of Commerce to develop new regulations on AI-related exports and encouraged AI investments in the United States. At the same time, it had emphasized global cooperation and encouraged partnerships with foreign countries to establish shared AI regulatory standards.

• EO 14110 was rescinded due to its allegedly “burdensome government requirements restricting private sector AI development and deployment.” The rescission, which was justified as necessary “to sustain and enhance America's AI dominance” came only a few days before President Trump issued EO 14179 (Removing Barriers to American Leadership in Artificial Intelligence), which aims to strengthen the U.S.’s position in AI by revoking existing policies and directives perceived as counter to domestic AI innovation. Among other things, EO 14179 directs a panel of AI and national security advisers to review “all policies, directives, regulations, orders, and other actions” taken pursuant to EO 14110 that “are or may be inconsistent with, or present obstacles to” the S. policy of sustaining and enhancing America’s global AI dominance.

The AI panel may recommend (as important U.S. industry players have advocated for) a strategic reduction of controls to facilitate more AI-related exports to a larger group of international allies and partners while simultaneously strengthening controls under Treasury’s Outbound Investment Security Program that went into effect in January, which aim to prevent China’s and other adversaries’ AI, semiconductors, and quantum computing industries from benefitting from U.S. investment.^[3]

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[1] However, on February 6, 2025, President Trump issued Executive Order 14203 “Imposing Sanctions on the International Criminal Court”, which imposed new sanctions on a different ICC prosecutor and include asset freezes and travel restrictions similar to the ones implemented in Trump’s first presidency. For more information on the impact of President Trump’s new sanctions on the ICC, read the full article here.

[2] For more information on EO 14156 (Declaring a National Energy Emergency), see Jonathan D. Brightbill, President Trump Declares National Energy Emergency; Seeks to Boost Domestic Fossil Fuel Production, Winston and Strawn LLP (Feb. 14, 2025), https://www.winston.com/en/blogs-and-podcasts/winston-and-the-legal-environment/trump-declares-national-energy-emergency-seeks-to-boost-domestic-fossil-fuel-production.

[3] For more information on the impact of President Trump’s rescinding of Biden’s 2023 Executive Order on Safe, Secure, and Trustworthy AI, see Kyle L. Dockendorf et al., Assessing the Impact of President Trump’s Rescinding of Biden’s 2023 Executive Order on Safe, Secure, and Trustworthy AI, Winston and Strawn LLP (Jan. 24, 2025), https://www.winston.com/en/insights-news/assessing-the-impact-of-president-trumps-rescinding-of-bidens-2023-executive-order-on-safe-secure-and-trustworthy-ai.