On April 14, 2025, the Trump Administration issued two federal register notices scheduled to be published on April 16, 2025. The notices seek public comments following the April 1, 2025 initiation of investigations targeting imports of pharmaceuticals and semiconductors pursuant to Section 232 of the Trade Expansion Act of 1962. The Trump administration claims that imports of semiconductors and pharmaceuticals are a threat to national security.
Section 232 Investigation on Pharmaceuticals
The Section 232 investigation on imports of pharmaceuticals covers finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients (APIs) and key starting materials, and derivative products of those items. The Administration is soliciting comments on the following aspects of the pharmaceutical supply chain:
- The current and projected demand for pharmaceuticals and pharmaceutical ingredients in the United States and the extent to which domestic production can meet domestic demand;
- The role of foreign supply chains, particularly of major exporters, in meeting U.S. demand for pharmaceuticals and its ingredients;
- The concentration of U.S. imports of pharmaceuticals and ingredients from a small number of suppliers and the associated risks;
- The impact of foreign government subsidies and predatory trade practices on U.S. pharmaceuticals industry competitiveness;
- The economic impact of artificially suppressed prices of pharmaceuticals and ingredients due to foreign unfair trade practices and state-sponsored over production;
- The potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over pharmaceuticals supplies;
- The feasibility of increasing domestic capacity for pharmaceuticals and ingredients to reduce import reliance;
- The impact of current trade policies on domestic production and whether additional measures, including tariffs or quotas, are necessary to protect national security.
Section 232 Investigation on Semiconductors
The Section 232 investigation on semiconductors includes within its scope semiconductors, semiconductor manufacturing equipment (SME), semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components as well as downstream products that contain semiconductors, such as those that make up the electronics supply chain. The Administration is soliciting public comments on the following aspects of the semiconductor supply chain:
- The current and projected demand for semiconductors (including as embedded in downstream products) and SME in the United States, differentiated by product type and node size;
- The extent to which domestic production of semiconductors and SME is expected to be able to meet domestic demand;
- The role of foreign fabrication and assembly, test and packaging facilities in meeting U.S. demand, and similarly the role of foreign supply of SME in meeting domestic demand;
- The concentration of U.S. semiconductors imports (including as embedded in downstream products) from a small number of fabrication facilities and the associated risks, and the concentration of U.S. SME imports from a small number of foreign sources;
- The impact of foreign government subsidies and predatory trade practices on U.S. semiconductor and SME industry competitiveness;
- The economic or financial impact of artificially suppressed semiconductor and SME prices due to foreign unfair trade practices and state-sponsored over capacity;
- The potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over semiconductors and SME supply chains;
- The feasibility of increasing domestic semiconductors and SME capacity to reduce import reliance;
- The impact of current trade and other policies on domestic semiconductor and SME production and capacity, and whether additional measures, including tariffs or quotas, are necessary to protect national security;
- What product types and node sizes could be built only using SME from U.S. companies;
- What SME is manufactured abroad and faces limited competition from U.S. made products;
- What SME parts or components are only available outside the United States;
- Where the U.S. workforce faces a talent gap in production of semiconductors, SME or SME components.
Comments are due by May 7, 2025 which is 21 days from April 16, 2025- the anticipated publication date of the federal register notices. The notices provide specific guidance on submitting comments that include business confidential information.
Importers and manufacturers in the pharmaceutical and semiconductor supply chain that may be impacted by potential tariffs are advised to review the notice and consider submitting comments.
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