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Trump Orders Stockpile of Critical Drug Ingredients to Strengthen U.S. Supply Chain
KEY POINTS
- The order requires a six-month supply of APIs for roughly 26 critical drugs, prioritizing domestic sources.
- The new federal policy increases risks of shortages of pharmaceuticals and APIs subject to new high-volume U.S. federal government orders.
- White House cites heavy foreign reliance as a key supply chain risk.
President Trump ordered the expansion of a national reserve to secure critical drug ingredients, aiming to bolster U.S. preparedness and reduce vulnerability to global supply chain disruptions.
President Trump signed an executive order Wednesday directing federal officials to expand the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), a stockpile meant to ensure a reliable supply of drug components critical to national health. The order tasks the Office of the Assistant Secretary for Preparedness and Response (ASPR) with identifying about 26 essential drugs and securing a six-month supply of their active pharmaceutical ingredients (APIs), with preference for domestic sources.
The directive also requires an update to the 2022 list of 86 essential medicines—ranging from antivirals to blood thinners— and developing a plan to build similar reserves for these drugs. In addition, ASPR is instructed to evaluate establishing a second SAPIR facility to expand capacity and strengthen national preparedness.
The new federal policy, along with planned tariffs on drug imports, could lead to a shortage of medications and their active ingredients. This is because the policy will result in the government placing large orders for certain medications and APIs at a time of reported stockpiling by existing purchasers of pharmaceuticals to avoid future tariffs.
According to the White House, only about 10% of the active pharmaceutical ingredients used in U.S. prescription drugs are currently produced domestically. Administration officials said reliance on foreign manufacturers exposes the country to risks of shortages during global disruptions. “Overreliance on foreign, sometimes adversarial, nations for Key Starting Materials (the materials used to make APIs) and APIs risks shortages of essential medicines,” the White House Fact Sheet noted. By stockpiling ingredients with longer shelf lives and lower costs than finished drugs, the administration said it can better ensure access during emergencies.
The order follows a series of policy measures targeting the pharmaceutical sector, including a proposal to raise tariffs on certain imports and an executive order introducing a “most-favored nation” pricing policy to lower U.S. drug costs, followed by letters to 17 pharmaceutical companies urging domestic production and competitive pricing.
For more information, see:
The White House, Fact Sheet: President Donald J. Trump Ensures American Pharmaceutical Supply Chain Resilience by Filling the Strategic Active Pharmaceutical Ingredients Reserve, August 13
The White House, Fact Sheet: President Donald J. Trump Announces Actions to Get Americans the Best Prices in the World for Prescription Drugs, July 31
Axios, Trump orders stockpiling of advanced drug ingredients, August 14
Fierce Pharma, Amid tariff-fueled onshoring push, Trump signs order to boost US stockpiling of certain drug ingredients, August 14
NPR, Pharmacists stockpile most common drugs on chance of targeted Trump tariffs, May 13
