Tax insight

US announces new sector tariffs; Section 232 investigations open for comments

Insight
5 minute read
October 01, 2025

What happened?

President Trump on September 25 announced a new round of tariffs targeting heavy trucks, kitchen cabinets, bathroom vanities, upholstered furniture, and branded or patented pharmaceuticals. Exemptions related to the tariffs on branded or patented pharmaceuticals have been announced for manufacturers actively building US facilities. Four days later, on September 29, President Trump announced that a 100% tariff will be imposed on movies that are made outside the United States, while also issuing a Presidential Proclamation and Fact Sheet introducing new restrictions on imports of timber, lumber, and derivative products, citing national security concerns tied to foreign reliance in this sector. Collectively, these measures underscore the administration’s strategy of using trade tools to bolster domestic industry and national security.

In parallel, Section 232 investigations announced on September 2 into imports of personal protective equipment (PPE), medical devices, robotics, and industrial machinery were formally opened for public comment in two Federal Register notices issued on September 26, with submissions due October 17. One notice focuses on the investigation into imports of PPE, medical consumables and medical equipment (including devices). The second notice pertains to an investigation into imports of robotics and industrial machinery imports and their parts and components.

Why is it relevant?

The new tariff announcements expand US trade measures into consumer and pharmaceutical sectors that are deeply integrated with global supply chains, while the proposal to impose a 100% tariff on foreign-made movies extends this approach into the entertainment sector, raising novel questions about enforceability and compliance. At the same time, the September 2 investigations broaden scrutiny into critical medical and industrial goods. For US companies, these developments heighten the risk of increased input costs, disrupted sourcing, and additional compliance obligations. The conditional tariff exemption for branded or patented pharmaceuticals and the focus on domestic capacity in the Section 232 investigations underscores the administration’s strategy of using trade tools to incentivize US-based investment, creating both risks and opportunities for companies with global manufacturing footprints.

Actions to consider

Companies should evaluate their import flows to identify direct and indirect exposure to the new tariff announcements, including the proposed tariff on foreign-made movies, and model potential cost impacts. Companies in affected sectors might consider reevaluating sourcing strategies, renegotiating supplier contracts, and exploring mitigation options. Given the scope of the Section 232 investigations, companies importing medical, robotics, or machinery products should consider submitting comments and documenting supply chain dependencies. Companies also should assess whether near-term capital investment in US facilities could unlock tariff relief, while entertainment companies in particular should monitor forthcoming guidance on the announced tariff. Across industries, proactive monitoring of trade policy developments remains critical to anticipate future measures and related compliance obligations.

For more details, read the full PwC Insight linked below.