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DailyClout Latest News

“White House launches national security investigation into pharma, semiconductors”

April 18, 2025 • by DailyClout

The Trump administration announced this week that it has initiated a national security investigation into the importation of certain pharmaceutical products, a move that could lay the groundwork for future trade restrictions, including potential tariffs on prescription drugs.

According to a notice published in the Federal Register by the Department of Commerce, the investigation—formally a Section 232 probe—began on April 1, one day before President Trump revealed plans for broad tariffs on imported goods. Notably, pharmaceuticals were initially excluded from that announcement.

Under Section 232 of the Trade Expansion Act of 1962, the president is authorized to restrict imports that are determined to pose a threat to national security. President Trump has stated publicly that he intends to impose “a major tariff” on imported prescription drugs in the near future.

The scope of the investigation includes finished generic and non-generic drug products, medical countermeasures, active pharmaceutical ingredients (APIs), key starting materials, and related derivative products. The inquiry will assess factors such as current and projected domestic demand, the role of foreign suppliers in meeting that demand, the risks associated with dependence on a limited number of foreign sources, and the potential for expanding U.S. manufacturing capacity.

While Section 232 investigations typically take up to 270 days to complete, the public comment period for this probe will close just three weeks after the notice’s official publication on April 16—signaling that the administration may seek to expedite the process.

This investigation follows similar actions taken by the administration in other sectors. In March, President Trump initiated Section 232 probes into the copper and timber industries. He has previously used the authority to justify tariffs on imports of steel, aluminum, and automobiles.

Separately, the Department of Commerce also disclosed that it has opened a Section 232 investigation into the national security implications of importing semiconductor technologies. President Trump has argued that tariffs on foreign-made chips will incentivize manufacturers to relocate operations to the United States.

Rewritten. Source article originally posted here: https://thehill.com/policy/healthcare/5248629-white-house-pharma-semiconductor-tariffs/

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