On April 14, 2025, the US trade (trade) published the draft Federal register Announcements that address public comments in two previously unannounced studies on the national security effects of imported medicines and pharmaceutical ingredients and semiconductors, semiconductor manufacturing devices and derivatics. The communications are planned for the publication on April 16, and the comments are due within 21 days of publication – ie until May 7, 2025.
background
As reported in the communications, Commerce himself inititates the investigation on April 1, 2025 in accordance with Section 232 of the 1962 (§ 232) Trade Experience Act, a statute that authorizes the trade of the national security effects of imported products. Within 270 days after the start of an investigation, the trade must issue a report on his results and make recommendations for measures to combat national security threats. The president must then determine whether he coincides with the results of the trade and determine whether measures are taken to take the tariffs to adapt relevant imports to alleviate their effects on national security.
According to sources, these investigations were initiated as the result of the predominant import dependence of the United States by foreign products that are the subject of these investigations, including the People's Republic of China. While the United States have currently collected tariffs for the import of certain pharmaceutical and semiconductor products, these new 232 examinations can lead to higher tariffs for imported products and “derivatives” that are downstream products that contain pharmaceuticals and semiconductors. Ultimately, the scope of these investigations that trade has not yet determined will be crucial for the determination of the types of products that are included in the investigation and potential appeal, and the countries concerned.
The new studies are carried out according to section 232, which were launched at the beginning of this year on the national security effects of imports of copper and wood/wood products. They also follow several examinations that were carried out during the first Trump management in relation to aluminum and steel products, as well as passenger vehicles, light trucks and certain automotive parts, which led to tariffs.
As mentioned above, the statute offers 270 days to issue its final report in the investigations. Based on the date of the initiation date on April 1, 2025, the reports are due on December 27, 2025 at the latest. In view of the relatively short time intended for comments, the reports can be granted on an accelerated basis and subsequent presidential provisions and measures can be raised.
Scope of the new investigations
Pharmaceutical 232 examination
The products that are subject to the new pharmaceutical examination are:
- Pharmaceuticals, including finished generic and non -generic drug products and medical countermeasures;
- Pharmaceutical ingredients, including active pharmaceutical ingredients and important starting materials; And
- Derivative products of the above -mentioned articles.
Semiconductor examination
The products that are subject to the new examination of the semiconductors are:
- Halfcover, including semiconductor substrates and mere wafer, legacy chips, leading chips and microelectronics;
- Semiconductor manufacturing devices, including components for such devices; And
- Derivative products of the above -mentioned articles, including downstream products that contain semiconductors and form the supply chain of the electronics.
Commentary inquiries of trade
In his inquiries about comments, Commerce notes that it is particularly interested in information about the criteria listed in 15 CFR § 705.4, including:
Pharmaceuticals
- Current and forecast US demand for drugs and pharmaceutical ingredients;
- To what extent domestic production can satisfy the demand for these products;
- The role of foreign supply chains, in particular the great exporters, in satisfying the US demand for drugs and pharmaceutical ingredients;
- The concentration of the US supply of drugs and pharmaceutical ingredients under a small number of suppliers and the risks associated with a concentrated supply basis;
- The effects of foreign subsidies and predatory trade practices on the competitiveness of the US pharmaceutical industry;
- The economic effects of prices from foreign unfair trade practices and the state -funded overproduction of muted goods;
- To cope with the potential for abroad, their control over the production and supply of medicines by export restrictions;
- The feasibility of an increase in domestic production capacity for pharmaceuticals and pharmaceutical ingredients to reduce import confidence; And
- The influence of current trade policy on the US production of medicinal products and pharmaceutical ingredients as well as the question of whether additional measures such as tariffs or odds are necessary to protect national security.
semiconductor
- The current and forecast demand for semiconductors (including embedded in downstream products) and SME in the USA, differentiated according to product type and node size;
- The extent to which the domestic production of semiconductors for every product type can meet in every node size in domestic demand and to what extent the domestic production of SMEs can be able to cover domestic demand;
- The role of foreigners from foreign production and assembly, the test and packaging facilities in combating the demand of the US semiconductor and in a similar way the role of SME abroad in the satisfaction of domestic demand;
- The concentration of the semiconductors of the United States (including embedded in downstream products) from a small number of manufacturing systems and the associated risks and, in a similar way, the concentration of the SMU imports of the United States from a small number of foreign sources.
- The effects of subsidies for foreign government and predatory trade practices on the Semiconductor and the competitiveness of the SME industry;
- The economic or financial effects of artificially suppressed semiconductor and SME prices due to foreign unfair trade practices and state-funded overcapacity;
- The potential for export restrictions by foreign nations, including the ability of foreign nations, to cope with their control over semiconductor and SME supply chains;
- The feasibility of increasing the capacity of the domestic semiconductors (in different product types and knot sizes) to reduce the import of imports and, in a similar way, the feasibility of increasing the domestic SME capacity to reduce the import of import;
- The effects of current trade and other guidelines on domestic semiconductor and SME production and capacity as well as whether additional measures, including tariffs or quotas, are necessary to protect national security.
- Which product types and knot sizes could only be created with SMEs by US companies?
- What SMEs is produced abroad and only a limited competition from US-made products.
- Which SME parts or components are only available outside of the United States; And
- Where the US workforce stands in front of a talent gap in the production of semiconductors, SMEs or SME components.
Interested parties who want to submit comments must do so for the dockets relevant to each examination. While business information can be submitted, it must be properly named in accordance with the provisions of the agency.
The content of this article is intended to offer a general guide on the subject. Specialist advice should be sought through your specific circumstances.