Executive summary

This edition of Trade Talking Points provides updates on trade policy developments, including United States (US) Customs and Border Protection's announcement of the launch date of International Emergency Economic Powers Act (IEEPA) duty refunds, revisions to US tariffs on aluminum, steel and copper imports, the US imposition of tariffs on patented pharmaceutical goods, and the United Kingdom (UK) Business and Trade Committee's launch of an inquiry into the UK-US trade relationship.

Latest US trade policy announcements

CBP announces CAPE launch date for Phase 1 of IEEPA duty refunds

On 10 April 2026, US Customs and Border Protection (CBP) announced that the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment Secure Data Portal (ACE Portal) will launch on 20 April 2026. CBP will use CAPE to consolidate and process all IEEPA duty refund requests, as authorized by court order or applicable law.

CBP will launch the first phase of CAPE on 20 April 2026. Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation.

For CAPE to facilitate IEEPA duty refunds, certain actions are required, including:

• Importers of Record and authorized customs brokers must each have an established ACE Portal account.
• Recipients who use the ACE Portal account must provide CBP with their bank account information.
• Importers of Record and authorized customs brokers who filed the original entry must submit CAPE Declarations in the ACE Portal.

For details, see EY Global Tax Alert, US Customs and Border Protection announces 20 April 2026 rollout of CAPE process for Phase 1 entries to administer IEEPA duty refunds in ACE, dated 10 April 2026.

US revises tariffs on aluminum, steel and copper imports

On 2 April 2026, the Trump administration revised the treatment of aluminum, steel and copper articles and their derivatives that are imported into the US. The revisions to the ad valorem tariff will apply to the customs value of the imported product, rather than to the metal content of the finished derivative, as was the case under the previous process.

The revisions will apply from 6 April 2026 (12:01am ET) to products entered for consumption or withdrawn from warehouses for consumption.

For products listed in Annex I-A, the ad valorem tariff treatment is as follows:

• 50% for non-US originating products made entirely of aluminum, steel and/or copper
• 25% for UK originating products made entirely of aluminum, steel and/or copper
• 10% for US originating derivative articles

For products listed in Annex I-B, a 25% ad valorem tariff will apply, unless one of the following applies:

• 15% for UK-originating products made entirely of aluminum, steel and/or copper
• 10% for US-originating derivative articles

The ad valorem tariff treatment for products listed in Annex II has been removed.

For products listed in Annex III that enter the US on or after 12:01 am ET on 6 April 2026 through 31 December 2027, the ad valorem tariff is as follows:

• 15% for products for which the current Column 1 ad valorem of the HTSUS is less than 15%
• 10% for products for which the current Column 1 ad valorem of the HTSUS is less than 10%
• 25% for products imported from trading partners with which the US does not maintain normal trading relations

For details, see EY Global Tax Alert, US presidential proclamation modifies Section 232 tariffs on steel, aluminum, copper and their derivative products, dated 3 April 2026.

US imposes tariffs on patented pharmaceutical products

On 2 April 2026, the Trump Administration issued a proclamation detailing the outcomes of the Section 232 Trade Expansion Act 1962 investigation into the effects of imports of pharmaceuticals and associated active pharmaceutical ingredients (APIs).

The investigation concluded that actions from foreign governments have undermined the competitiveness of the US patented pharmaceutical industry and have led to further dependence on non-US production of patented pharmaceuticals.

In response to the investigation's conclusions, President Trump has imposed a 100% tariff on patented pharmaceutical products and ingredients that will come into effect in 120 days for certain large companies and in 180 days for smaller companies. Certain goods are exempt from the 100% tariff, as follows:

• Pharmaceutical products from the European Union (EU), Japan, Korea, Switzerland or Liechtenstein will be subject to a 15% tariff. Products from the UK will be subject to a lower tariff.
• For companies that enter into Most Favored Nation pricing agreements with the US Department of Health and Human Services and onshoring agreements with the US Department of Commerce, a 0% tariff will apply until 20 January 2029.
• For companies that only enter into onshoring agreements with the US Department of Commerce, a 20% tariff will apply.
• Generic pharmaceuticals, biosimilars and associated ingredients are exempt. This exemption will be reassessed in one year.
• Orphan drugs, animal health drugs and certain other specialty pharmaceutical products will be exempt if they originate from trade deal countries or meet an urgent public health need.

For details, see EY Global Tax Alert, US Section 232 proclamation imposes up to 100% tariffs on patented pharmaceuticals and active pharmaceutical ingredients, dated 3 April 2026.

Latest EU trade policy announcements

Spain's Prime Minister Pedro Sánchez visits China

On 13 April 2026, the Prime Minister of Spain, Pedro Sánchez, delivered (in Spanish) a speech at Tsinghua University in Beijing, China as part of his state visit to the Chinese capital.

During his visit, Prime Minister Sánchez aimed to strengthen Spain-China political relations and promote a more balanced trade relationship between the EU and China.

In his speech, Prime Minister Sánchez emphasized the need for China to move toward a more-balanced trade relationship with its trading partners and to address its significant trade surplus with the EU.

In 2025, the EU imported €559.4b worth of goods from China and exported €199.6b, resulting in a trade deficit of €359.8b.

Latest UK trade policy announcements

UK Business and Trade Committee launches inquiry into UK-US Economic Prosperity Deal

On 13 April 2026, the UK Parliament Business and Trade Committee launched an inquiry into the UK-US Economic Prosperity Deal, amid concerns about the benefits the agreement has delivered to the UK. The findings of the inquiry are expected to be released before the summer.

The inquiry will examine:

• Whether the UK has a coherent strategy for its economic relationship with the US
• The current state of tariffs and sectoral barriers
• What the Economic Prosperity Deal has delivered and where it has fallen short
• Priorities for future UK-US trade cooperation in a more contested global economy