“The Trump administration’s Section 232 inquiry into pharmaceutical imports represents a pivotal moment for the sector. Leaders in pharmaceutical supply chains must adjust and create solutions to maintain access to essential medications while responding to the changing trade environment.” — Srihari Rangarajan, EY Americas Life Sciences Supply Chain Leader
According to a new report from EY, the potential for tariffs on imported pharmaceuticals could have an impact on domestic manufacturing priorities.
- The Trump administration’s Section 232 investigation into pharmaceutical imports raises concerns about supply chain vulnerabilities.
- National security implications are central to the investigation, focusing on foreign control over pharmaceutical supply chains.
If tariffs are imposed, they could significantly impact drug affordability and accessibility, forcing pharmaceutical companies to rethink approaches. - The Trump administration’s recent Section 232 investigation into pharmaceutical imports has sent ripples through the industry, raising concerns about supply chain disruptions, pricing volatility and national security implications. With the potential for tariffs on imported pharmaceuticals, the industry faces a pivotal moment that could reshape global sourcing strategies and domestic manufacturing priorities.
Understanding Section 232 and its implications
Section 232 of the Trade Expansion Act of 1962 grants the president authority to impose import restrictions if an investigation by the Department of Commerce determines that such imports threaten US national security. Historically, this provision has been used to justify tariffs on steel, aluminum and automobiles. Now, the pharmaceutical sector is under scrutiny, with the administration citing concerns over foreign dependency on critical medicines and active pharmaceutical ingredients (APIs).1
Read more of the EY Report Here
The Section 232 Request for Information & How Our Industry Responded
When the request for comment period ended on May 7, 2025 at 11:59 PM EDT, input had been received from 241 individuals and organizations.
As these comments are made publicly available, highlights will be posted here.
Business Roundtable (“the Roundtable” or “BRT”) is an association of more than 200 chief executive officers (“CEOs”) of America’s leading companies, representing every sector of the U.S. economy. BRT CEOs lead U.S.-based companies that support one in four American jobs and almost a quarter of U.S. gross domestic product (“GDP”). Read the Comments