Trump EO to bolster stockpile of active pharmaceutical ingredients for drugs

An Executive Order signed by President Trump on Wednesday aims to increase the amount of active pharmaceutical ingredients — the raw materials used to make medicines — stockpiled in the U.S.

The order mandates that HHS create a list of around 26 critical drugs “vital to national health and security,” according to a White House fact sheet. The Strategic Active Pharmaceutical Ingredients Reserve would then receive the APIs to manufacture the drugs, with a preference for ones that are domestically produced.

A 6-month supply of the ingredients would be kept.

In addition, HHS’ Assistant Secretary for Preparedness and Response is asked to update a list of 86 essential medicines and develop a plan for a 6-month API supply for those medicines as well.

The EO comes as Trump has been placing increasing pressure on drugmakers to move more manufacturing to the U.S. from overseas, using the threat of tariffs as leverage.

During a late morning news conference Thursday on the White House grounds, Senior Counselor to the President for Trade and Manufacturing Peter Navarro said that about 60% of APIs used in drugs in the U.S. come from China and India.

Navarro referenced an ongoing investigation by the Commerce Department into the potential national security implications of relying on imported drug production.

“If, as is almost certain to be the case, the Department of Commerce finds that the flood of imports of pharmaceuticals into this country are indeed a national security threat, there will be tariffs.” Responding to a reporter’s question, he said that the tariffs would apply mostly to generic drugs.

Navarro added that the EO and the tariffs “will provide everything the private sector needs to bring home our pharmaceutical manufacturing.”

He noted that to support domestic pharmaceutical production, HHS, the Veterans Administration, and Department of Defense would issue long-term contracts with drugmakers to provide critical medicines. As a result, Navarro said that companies would then “have assurances that if they make the kinds of investments that need to be made, they will be rewarded with demand from the government.”

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