Insights

On April 2, 2026, the one-year anniversary of President Trump’s “Liberation Day” tariff announcement¹, the administration published two new presidential actions related to tariffs under Section 232 of the Trade Expansion Act of 1962. The first of these actions is a Presidential Proclamation that re-shapes previously implemented Section 232 tariff measures on imports of steel, aluminum, and copper products (“the Metals Proclamation”). In addition to the Metals Proclamation, the President issued a separate Executive Order implementing a 100% tariff on imports of patented pharmaceutical products and ingredients.

Presidential Proclamation on Steel, Aluminum, & Copper Tariffs

The Metals Proclamation builds on the existing Section 232 tariff regimes for aluminum, steel, and copper and makes several significant changes effective April 6, 2026. Notably, products listed in Annex II of the Metals Proclamation are no longer subject to steel and aluminum Section 232 tariffs. The Metals Proclamation also includes several other annexes that set forth an updated tariff scheme for subject steel, aluminum, and copper imports.

Articles listed in Annex I-A of the Metals Proclamation are subject to a 50% tariff rate on the full value of the product, regardless of the product’s metal content percentage. Articles covered under Annex I-A that are UK-origin and produced with steel or aluminum that is melted/poured or smelted/cast in the UK are subject to a lower tariff rate of 25%. In addition, derivative products covered under Annex I-A that are produced abroad using metals that are entirely melted/poured or smelted/cast within the U.S. are subject to a 10% tariff rate.

Articles listed under Annex I-B, which largely includes items outside of Chapters 72, 73,74, and 76 of the U.S Harmonized Tariff Schedule (“HTS”), are generally subject to a 25% tariff rate. UK-origin products covered under Annex I-B that are produced using metals that are melted/poured or smelted/cast within the UK are subject to a 15% tariff rate. Annex I-B articles that are foreign-produced using metals that are melted/poured or smelted/cast in the U.S. are subject to a 10% tariff rate.

Articles listed in Annex III, which includes certain industrial equipment and machinery, will be subject to a lower tariff rate of up to 15%, unless imported from a country that does not have normal trading relations with the U.S, under a temporary framework running through December 31, 2027. The standard Annex I-B tariff rates will become applicable to products listed under Annex III on January 1, 2028. Importantly, a 200% tariff rate remains applicable to any products listed under the Annexes of the Metals Proclamation that contain aluminum that was smelted or cast in Russia.

Executive Order on Pharmaceutical Tariffs

The Executive Order imposing new tariffs on pharmaceutical products (“the Pharmaceutical Order”) opens a new Section 232 front in the healthcare sector. The Pharmaceutical Order adopts the Department of Commerce’s finding that imports of pharmaceuticals and pharmaceutical ingredients threaten to impair U.S. national security, with a particular focus on patented pharmaceuticals and associated active pharmaceutical ingredients and key starting materials. The new Section 232 tariffs will take effect on July 31, 2026 for companies listed in Annex III and on September 29, 2026 for other companies.

For covered patented pharmaceutical products and ingredients listed in Annex I of the Pharmaceutical Order, the default tariff rate will be 100%. However, products of companies with approved onshoring plans may qualify for a 20 % tariff rate, which is scheduled to increase to 100% on April 2, 2030. Products of Japan, the European Union, South Korea, Switzerland and Liechtenstein are assigned a 15% tariff rate unless a lower rate applies, while products of the United Kingdom are assigned a 10% rate, with the possibility of reduction to zero if required by a future U.S.-U.K. pharmaceutical pricing arrangement. In addition, companies that qualify for the onshoring framework and also enter into MFN pharmaceutical pricing agreements with the Secretary of Health and Human Services will be subject to a 0% rate until January 20, 2029.

The Pharmaceutical Order also contains several important exclusions and implementation features. Generic pharmaceuticals and associated ingredients, including biosimilars, are not subject to the new Section 232 tariffs at this time, although the Department of Commerce is directed to revisit that issue within one year. A 0% tariff rate is also provided for certain specialty and health-sensitive categories, including orphan drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody-drug conjugates, certain medical countermeasures, and animal health products, subject to specified conditions. The Pharmaceutical Order further directs Commerce to establish criteria for onshoring plans, requires periodic progress reporting, permits external audits, and authorizes prospective and retroactive tariff increases where a company fails to satisfy commitments or misleads the government regarding onshoring obligations.

The April 2, 2026 tariff actions reinforce that Section 232 remains one of the administration’s key trade tools that can be utilized to implement targeted tariff measures and reward countries or specific companies that pursue deals with the U.S. In the wake of these two actions, importers should expect heightened compliance demands, including product-specific classification and annex reviews, origin tracing for metal inputs, and close scrutiny of any claims for reduced treatment tied to U.S.-origin content, jurisdiction-specific treatment, or pharmaceutical onshoring arrangements.

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If you have questions on the tariff measures discussed in this article or need guidance on compliance with U.S. import regulations, please feel free to contact the attorneys at Torres Trade Law, PLLC for assistance.