This update reviews material U.S. legal and regulatory developments as of October 10, 2026.

USTR confirmed on October 9 that the preliminary determination in the Section 301 investigation covering Turkish exports will be released on October 28, 2026. The preliminary determination will specify the proposed tariff rates and the product categories subject to additional tariffs. A 30-day public comment period will follow the preliminary determination, with a final determination expected in December 2026.

Turkish exporters in the affected categories — steel products, aluminum products, automotive parts, textiles, and certain manufactured goods — should prepare their public comments for submission during the 30-day comment period. Comments that provide specific data on the economic impact of proposed tariffs on U.S. importers, consumers, and supply chains are most effective in influencing the final determination. Turkish companies should engage U.S. trade counsel to prepare comments and coordinate with U.S. industry associations that may file joint comments.

CFIUS announced on October 8 that it has initiated an enforcement action against a foreign acquirer for failing to comply with the terms of a mitigation agreement entered into in connection with a 2024 acquisition of a U.S. technology company. The enforcement action alleges that the acquirer failed to implement required cybersecurity controls, provided unauthorized access to sensitive technical data to foreign nationals, and failed to submit required compliance reports.

Turkish companies that have entered into CFIUS mitigation agreements — or that are negotiating mitigation agreements in connection with pending transactions — should review their compliance programs carefully. The enforcement action signals that CFIUS is actively monitoring compliance with mitigation agreements and is prepared to take enforcement action for violations. The consequences of non-compliance can include civil penalties, divestiture orders, and reputational damage.

The Internal Revenue Service published updated guidance on transfer pricing documentation requirements under Section 482 on October 9. The guidance clarifies the contemporaneous documentation requirements for related-party transactions, including the specific information that must be included in the principal and supporting documents, and the penalties for failure to maintain adequate documentation.

Turkish companies with U.S. subsidiaries or branches that engage in related-party transactions — including intercompany loans, management fees, royalties, and cost-sharing arrangements — should review their transfer pricing documentation against the updated IRS guidance. The documentation must be prepared contemporaneously with the transaction and must be available for production to the IRS upon request. Failure to maintain adequate documentation can result in penalties of 20-40% of the transfer pricing adjustment.

The Department of Labor finalized its independent contractor classification rule on October 9, adopting a multi-factor economic reality test for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. The rule replaces the 2021 rule that had emphasized two core factors — control over work and opportunity for profit or loss — with a more holistic six-factor analysis.

Turkish companies with U.S. operations that use independent contractors — including technology companies, logistics companies, and professional services firms — should review their contractor relationships against the new six-factor test. Workers who are economically dependent on a single company are more likely to be classified as employees under the new rule, which would require the company to pay minimum wage, overtime, and employer payroll taxes for those workers.

This publication is for general informational purposes only and does not constitute legal advice.