Section 232 update: metals and pharmaceutical tariffs

US Section 232 tariffs on steel, aluminium, and copper were adjusted on 2 April 2026, with the changes taking effect on 6 April 2026. Under the new framework, tariffs apply to the full value of the imported product. Covered imports are grouped into specific categories, with different ad valorem rates based on product type and metal content.

At the same time, a separate executive order updated Section 232 pharmaceutical tariffs, affecting life sciences importers. For EU‑origin products, however, the tariff appears to align with the still unratified US–EU deal. Based on current information, this would imply a ceiling of 15 per cent, rather than the 100 per cent rate applied to certain non‑EU products.

Section 232 metals tariffs

The new framework restructures Section 232 metals tariffs into a tiered system and applies tariffs to the customs value of the imported good. For many derivative products, this replaces the previous method, under which duties applied only to the value of the steel, aluminium, or copper content. The applicable duty rate is set out in the Annexes issued by the White House, on an HTS code basis.

Key changes to Section 232 metals tariffs

*Illustrative only. Specific HTS codes and their respective duty rates can be found in Annexes I‑A, I‑B, II, III, and IV  

For the full table that breaks down all the changes, visit Business Sweden’s US–Sweden Tariff Intelligence & Advisory Platform. 

Additional details <7H6>

• Products made from combinations of steel, aluminium, and copper are subject to the applicable duty rates only once.
• Existing trade agreements remain unchanged. Prior arrangements with the UK, the EU, Japan, the Republic of Korea, and other trading partners that reduce Section 232 tariffs continue to apply to covered aluminium, steel, and copper products. This includes civil aircraft and civil aircraft parts covered by the WTO Agreement on Trade in Civil Aircraft.
• Previous product‑inclusion processes for steel, aluminium, and copper imports have been terminated. The Secretary of Commerce and the US Trade Representative may now jointly include additional aluminium, steel, or copper derivative articles within the scope of Section 232 tariffs where imports are found to raise national security concerns. They may also modify or reverse prior inclusion decisions.

Section 232 Pharmaceutical Tariffs

A separate executive order was also issued on 2 April 2026, introducing Section 232 tariffs on patented pharmaceutical products and ingredients. The tariffs are grounded in national security concerns, reflecting findings that heavy US reliance on foreign pharmaceutical supply chains could impair access to critical medicines during periods of disruption.

The US seeks to mitigate this risk by combining significant tariffs with continued negotiations on onshoring agreements linked to Most‑Favoured‑Nation pricing commitments. Preferential treatment is granted to companies that commit to domestic production of pharmaceuticals and related ingredients.

Key changes to Section 232 Pharmaceutical Tariffs

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*Illustrative only. Specific HTS codes and their respective duty rates can be found in Annexes I, II, III, and IV 

** Unless covered by a qualifying plan/agreement 

***Health and Human Services 

Additional details

• Where both Section 232 pharmaceutical tariffs and HTSUS Column 1 duties apply, the combined rate is capped at the listed 232 tariff rate, unless the Column 1 rate is higher (in which case only the Column 1 rate applies). However, this tariff-stacking rule does not apply to UK products.
• If multiple tariff rates apply under the proclamation, the lowest applicable rate prevails.
• US‑origin pharmaceutical products are exempt from the Section 232 tariffs, as specified in the executive order.
• The Secretary of Commerce, in consultation with HHS, will set and publish criteria for qualifying onshoring plans in the Federal Register.
• All onshoring plans are subject to approval, monitoring, and enforcement by the Secretary.
• Companies with approved plans must submit periodic progress reports, which may be externally audited.
• If a company is found to have misled the US Government, the Secretary may reimpose tariffs prospectively and retroactively and apply additional penalties under applicable law.

What this means in practice for Swedish companies

• Producers of products made entirely of steel, aluminium, or copper (e.g. coils, sheet, plate) are not materially affected relative to previous Section 232 tariff exposure and continue to face high 50 per cent ad valorem duties.
• Given that these primary and basic metal products will still face similar tariff levels, US steel prices are not expected to fall significantly.
• Producers of derivative products are affected the most by the tariff updates:
• Derivative products with a high proportion (> 50 per cent) of steel, aluminium, or copper value will now likely face reduced duty exposure Derivative products with a significantly low proportion (<15 per cent) of steel, aluminium, or copper value are now exempt from tariffs Derivative products with a relatively low proportion (15 per cent < x < 50 per cent) of steel, aluminium, or copper value will now likely face higher duty exposure
• Swedish producers of patented pharmaceuticals and associated pharmaceutical ingredients may have a competitive advantage when the Section 232 Pharmaceutical tariffs are introduced, as they will face no more than the EU tariff rate of 15 per cent, compared to producers in countries without a US agreement, which may face a duty rate of up to 100 per cent.
• Given the high 100 per cent duty rate on pharmaceutical imports, competitors may race to establish US-based production, removing their tariff burden. Swedish producers should remain vigilant of their competitors’ moves and consider if US-based production would be necessary to stay competitive in that event.

In the near term, Swedish companies should:

• Re-evaluate tariff exposure, related cost models, and how this may impact margins and pricing
• Pull forward and consider tactically stockpiling pharmaceutical imports ahead of the effective date of the new tariffs
• Adapt commercial contracts to reflect changes in tariff exposure and landed costs
• Revisit purchasing agreements with both US-based and foreign-based component producers, given the new tariffs and competitive landscape
• Consider Free Trade Zone storage for products that have high duty rates, high valuation, long lead times/inventory holding periods, irregular demand, or may be re-exported (e.g., slow-moving spare parts)
• Assess whether US-based localisation is feasible, how it would impact landed costs, and whether it would improve competitiveness

What to watch this week

• The ratification of the EU-US deal may further lower tariff exposure for producers of metal products and derivatives, as negotiations continue
• Section 301 investigations, including opportunities for public comment and their potential country-by-country and product-by-product impact

Get SME tariff support

Swedish small and medium‑sized enterprises can join the US–Sweden Tariff Intelligence and Advisory Platform to access webinars and stay updated on new tariff developments. Large companies are welcome to register as well. Click here to register for the US–Sweden Tariff Intelligence & Advisory Platform

Get in touch

Business Sweden has extensive experience in tariff scenario analysis, localisation planning and supplier assessments. For support with your supply chain or to understand how new tariffs may affect your US operations, please contact Johan Karlberg or Vlad Månsson.

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