On 3 June 2026, the European Commission (“Commission”) published its proposal for a Regulation establishing a framework of measures for strengthening Europe’s cloud and AI ecosystem—the Cloud and AI Development Act (“CADA Proposal”). The CADA Proposal sits at the heart of the Commission’s broader Tech Sovereignty Package (which we describe at a high level here
Weekly Trade Update: June 1 – 5, 2026
USTR Proposes Section 301 Tariffs on Brazil
On June 1, 2026, the United States Trade Representative (“USTR”) proposed under Section 301 of the Trade Act of 1974 (“Section 301”) to impose tariffs on imports of goods from Brazil due to Brazil’s practices involving digital trade and electronic payment services, unfair and preferential tariffs, anti-corruption enforcement,
EU AI Act Update: The European Commission Publishes Draft Guidelines on HRAIs
On 19 May 2026, the European Commission published its long-awaited draft, non-binding guidelines on the classification of high-risk AI systems (“HRAIs”) under the EU AI Act (the “Guidelines”). Across three documents—covering general principles, high-risk classification in the context of regulated products (Annex I), and high-risk use cases (Annex III)—the Commission sets out its approach to
Illinois Department of Human Rights Seeks Public Comment on Draft AI Employment Regulations
Last month, the Illinois Department of Human Rights (“IDHR”) released draft regulations addressing employers’ use of AI in employment decisions and invited public comment. The IDHR will hold a hearing on the draft regulations on June 10, and the public comment period will close on June 29.
Background
HB 3773 (the “Amendment”), which amended
White House Releases Executive Order on Advanced AI Innovation and Security
In a new post on Inside Privacy, our colleagues discuss the White House’s issuance of an executive order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” The order reflects the Administration’s policy of advancing U.S. leadership in AI while addressing national security risks, including through measures to strengthen government and private-sector cybersecurity
EU Tech Sovereignty Package
On June 3, the European Commission published its Tech Sovereignty Package, a set of legislative and policy initiatives designed to address what the Commission characterizes as Europe’s technological dependencies on non-European suppliers. The Package marks a further step in the evolution of the EU’s technology policy, with initiatives spanning the full tech stack—from chips
BIS Confirms Advanced Chip License Requirements Extend to D:5 and Macau-Headquartered Entities Worldwide
Key Takeaway: BIS’s latest guidance closes an ambiguity created by the AI Diffusion Rule rollback, confirming that the original 2023 license requirement for advanced computing items exported to Country Group D:5 and Macau-headquartered entities remains in full force – regardless of where those entities are physically located.
On May 31, 2026, the U.S. Department of
Trump 2.0 tariff tracker
According to President Trump, “Tariff is the most beautiful word in the dictionary.” Throughout his presidential campaign, Trump promised to use tariffs as a central part of his foreign policy strategy. His America First Trade Policy memorandum also directs the administration to review various tariff- and tariff-adjacent levers the United States could use to further
Silent AI risks finally make some noise
A decade ago, “silent cyber” forced the market to confront unintended, unpriced coverage lurking among traditional policy lines. The same dynamic is now playing out with artificial intelligence, and it is accelerating faster than policy language, underwriting questionnaires or claims protocols can adapt. The result is a growing category of “silent AI” exposure, being AI-related
APRA’s latest System Risk Outlook
On 21 May 2026, the Australian Prudential Regulation Authority (APRA) issued the latest edition of its System Risk Outlook report.
The System Risk Outlook report provides an overview of risks and vulnerabilities affecting the financial system from the perspective of Australia’s financial safety regulator.
Highlights include:
- Australia’s financial system is resilient and well-positioned to support