The U.S. Department of Commerce in a Federal Register notice said the probe, known as a Section 232 investigation, began April 1, the day before President Trump announced widespread tariffs on all imported goods but specifically exempted pharmaceuticals.
According to the notice, the investigation “includes both finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients and key starting materials, and derivative products of those items.”
This investigation is a likely prelude to Trump’s tariffs to come.
Section 232 investigations allow the president to restrict imports deemed a threat to national security. Trump last week said he will impose “a major tariff” on prescription drug imports in the coming weeks.
A typical investigation takes 270 days before a report is given to the president, but public comments on the notice are due just three weeks from the official April 16 publication date, an indication the investigation will move much quicker.
Trump’s threats to impose tariffs on pharmaceutical drugs has put the industry on edge, with experts warning the plan could disrupt global supply chains.
“Our concern is actually less about price increases because [of] the tariffs and more about generic manufacturers dropping out of the market,” which would exacerbate existing shortages, Tom Kraus, vice president of government relations for the American Society of Health-System Pharmacists, told The Hill.
“While that impacts the profitability of a branded drug, for a generic drug, if it pushes them over the line to no longer being profitable, they may just drop out of the market, and then we have a shortage.”
