News

The U.S. made significant updates to Section 232 tariffs for key metals and pharmaceutical imports. 

Key Changes (Effective April 6^th, 2026, 12:01 a.m. ET) 

Metals

Tariffs will now be assessed based on the full value of imported goods—not reduced foreign pricing. 

• 50% tariff: Articles made entirely or almost entirely of steel, aluminum, or copper (e.g., coils, sheets).
• 25% tariff: Derivative products substantially made of these metals.
• 15% tariff (through 2027): Certain metal-intensive industrial and electrical grid equipment to support U.S. industrial expansion.
• 10% tariff: Products manufactured abroad using entirely U.S.-origin metals.

Exemption: Goods containing 15% or less of these metals are no longer subject to Section 232 tariffs.

Pharmaceuticals

100% tariff on patented pharmaceutical products and ingredients under Section 232. Effective in 120 days (large companies) and 180 days (smaller companies).

Reduced tariffs (15%) apply for certain places: EU, Japan, Korea, Switzerland, Liechtenstein, and the United Kingdom (per recent agreement).

White House fact sheet

U.S. Customs and Border Protection (CBP) has established a four-step process to refund importers for voided International Emergency Economic Powers Act (IEEPA) tariffs. The Consolidated Administration & Processing of Entries (CAPE) system consists of four steps:

1. Claim submission
2. Mass processing
3. Review and liquidation/reliquidation
4. Refund delivery

While CAPE represents progress, Phase 1 is limited in scope, and CBP has not clarified how it will interact with existing strategies, such as filing protests.

More information

Airspace restrictions remain in place for these countries:

Bahrain, Iran, Iraq, Israel, Kuwait, Lebanon, Qatar, & Syria.

• Airspace is now open in the United Arab Emirates (UAE), and airlines from some neighboring countries are flying (EgyptAir, Oman Air, etc.)

Latest Updates

Several leading ocean carriers—CMA CGM, MSC, Hapag-Lloyd, etc.—have already announced emergency fuel surcharges for routes to and from the Middle East.

Most carriers are expected to implement emergency fuel surcharges in April, although the exact amounts and implementation dates are still being reviewed.

Latest news

Peak Season Surcharges (PSS) are already in place for many routes to and from the Indian subcontinent.

India, the world’s #3 oil consumer, imports >80% of its crude oil needs and 60% of its cooking gas, with the Middle East accounting for a large chunk of the supply.

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U.S.-led military action against Iran is disrupting global supply chains, affecting Middle East airspace, and crippling key trade routes like the Strait of Hormuz. The United States has established a maritime warning zone in the Persian Gulf, Gulf of Oman, North Arabian Sea, and the Strait of Hormuz, effectively halting shipping. Houthi militants in Yemen are threatening retaliation and may resume attacks on commercial shipping in the Red Sea.

Key Effects

• Airlines have suspended flights across the Middle East
• Maritime risk insurance prices will rise significantly
• Oil tanker prices are becoming exorbitant

Following a key Supreme Court decision that invalidated tariffs under the International Emergency Economic Powers Act (IEEPA), the Trump Administration is implementing a new 10% global tariff under Section 122 of the 1974 Trade Act.

• New tariffs take effect February 24^th
• The tariffs can last for up to 150 days
• Goods from Mexico and Canada are excluded due to previous trade agreements.
• The law is unclear about whether the administration could restart the tariffs immediately after the 150 days via another executive order. The U.S. Congress may have to take action to extend them.

IEEPA tariffs will no longer be collected effective February 24, 12:01 am EST. There is currently no operational guidance from U.S. Customs and Border Protection (CBP) regarding IEEPA refunds. Importers should ensure their ACH refund accounts are properly configured with CBP, as this will help prevent delays if/when refunds are authorized.

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