U.S. Expands Section 232 Tariffs on Metals and Pharmaceuticals

Apr. 8, 2026

Customer Advisory

The U.S. administration has announced significant updates to Section 232 tariff measures, expanding coverage across key industrial metals and initiating new actions targeting pharmaceutical imports. Recent guidance from U.S. Customs and Border Protection (CBP) provides additional clarification on implementation and scope, with metal tariff changes expected to take effect in early April.

Steel, Aluminum, and Copper Tariffs
A Proclamation issued April 2, 2026 revises how Section 232 tariffs are applied to imported steel, aluminum, and copper products. CBP has since issued implementation guidance confirming classification, valuation, and reporting expectations for affected imports.

Tariffs will now be assessed based on the full value of goods, with updated rates depending on material composition:

50% tariffs on products made entirely or primarily of these metals
25% tariffs on derivative products
15% tariffs (through 2027) on certain industrial and grid-related equipment
Reduced 10% tariffs for products manufactured abroad using U.S.-origin metals
Items containing minimal metal content (≤15%) are excluded

Importers should expect increased scrutiny on product classification and declared value, as CBP begins enforcement under the updated framework. Additional technical guidance, including tariff applicability and reporting requirements, has been issued via CBP messaging.

Pharmaceutical and API Import Measures
A separate Section 232 action targets imported patented pharmaceuticals and active pharmaceutical ingredients (APIs), citing supply chain dependence and national security risks. Key provisions include:

100% tariffs on certain patented pharmaceuticals and APIs
Reduced rates (e.g., 20%) for companies with approved U.S. onshoring plans, with escalation over time
Zero or reduced tariffs tied to specific trade agreements or pricing/onshoring commitments
Generic pharmaceuticals are currently excluded from these measures

These measures are not expected to take effect immediately, with additional implementation details and timelines to be provided. If you have any questions regarding how these developments may impact your shipments or supply chain, please contact your KWE representative.