Trump administration investigating national security risk of imported drugs
The Trump administration is investigating whether importing drugs and active pharmaceutical ingredients (API) poses a threat to national security and is seeking public feedback on the pharmaceutical supply chain. The investigation could be used to justify tariffs on pharmaceutical imports.On 14 April, the Department of Commerce (DOC) announced that is investigating the potential national security threat raised by importing drugs. The administration is also fielding similar investigations into imports of copper, lumber, and semiconductors for their potential national security risk, as a means of justifying tariffs under the Trade Expansion Act of 1962.
“The Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of pharmaceuticals and pharmaceutical ingredients, including finished drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients, and key starting materials, and derivative products of those items,” said DOC in a federal register notice. “Interested parties are invited to submit written comments, data, analyses, or other information pertinent to the investigation to the Department of Commerce’s (Department) Bureau of Industry and Security (BIS), Office of Strategic Industries and Economic Security.”
More specifically, DOC asked for feedback in 10 areas, including current and projected demand for drugs and APIs, the ability of domestic drug manufacturers to meet the demand, the role foreign drug manufacturers have in meeting the demand, and the impact of foreign government subsidies and predatory trade practices on US drug manufacturing.
DOC says it is conducting the investigation under Section 232 of the Trade Expansion Act. The law allows the president to impose trade restrictions, such as tariffs, as a matter of national security.
The federal register announcement comes almost two weeks after the Trump administration announced 10% tariffs on all products imported into the US, with a few exceptions, including pharmaceuticals. President Donald Trump has said that tariffs on drugs would be announced later.
Concerns about the US’ reliance on imported drugs and APIs have been raised in recent years. During the COVID-19 pandemic, shortages and fears of export restrictions caused many jurisdictions to rethink supply chain security.
Stakeholders have until 7 May to comment on the notice to DOC’s Bureau of Industry and Security (BIS) under docket no. 250414-0065.
Federal Register Notice
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