U.S. export license delays disrupt trade as BIS faces internal challenges

The U.S. government is reportedly delaying the approval of thousands of export license applications, creating uncertainty for companies seeking to export critical products and technology abroad, particularly to China [1]. The delays, attributed to internal challenges within the Department of Commerce, have raised concerns among businesses and industry stakeholders, who argue that the prolonged processing time is hampering international trade operations [1].

Commerce Secretary Howard Lutnick, a key figure in Trump’s trade policies, has been at the center of the controversy. His team has faced criticism for failing to release anticipated trade regulations and for maintaining minimal engagement with industry stakeholders [1]. Additionally, the department has experienced a wave of resignations and buyouts, leading to a shortage of specialized staff and weakening its operational capacity [1].

The Bureau of Industry and Security (BIS), responsible for overseeing export licenses, has become a focal point of the delays. In a statement, an anonymous official explained that the BIS is implementing strict regulations and aggressive enforcement to align with President Donald Trump’s trade policies [1]. However, these measures have disrupted the market, with companies like Nvidia reporting that their AI chip shipments to China have been stalled despite prior assurances from officials [1].

The number of license applications is currently at a historical high, according to one U.S. official. The BIS has also cited security concerns as a reason for the delays [1]. Some business leaders and tech companies have expressed frustration, arguing that the agency’s approach reflects inaction rather than support for international trade [1].

Meghan Harris, a former National Security Council official, emphasized the economic impact of the licensing delays. She noted that licensing is essential to supporting U.S. enterprises and reinforcing the nation’s position as a global trading power. The uncertainty and delays, she argued, create a net negative effect on various aspects of the economy [1].

Jeffrey Kessler, the under-secretary at BIS, has drawn additional scrutiny for his management style. Reports indicate that Kessler has been micromanaging the bureau and restricting communication between staff and industry representatives [1]. During a staff meeting, he reportedly instructed employees to limit interactions with company spokespeople and industry executives. Additionally, Kessler required that all meetings be logged in a spreadsheet and that staff seek approval from his office before participating in interagency meetings [1].

While a representative from BIS defended Kessler’s approach, stating that it is intended to maintain the bureau’s integrity, critics argue that his policies have exacerbated the delays and contributed to the growing discontent within the agency [1].

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Source: [1] [The U.S. is delaying thousands of export license approvals](https://coinmarketcap.com/community/articles/688da5d113c64465ecc43ada/)