Impacts of Trump’s Drug Manufacturing Order

Check this out. What will quickly hit you is how Trump’s simple order, i.e. to have the Federal Government start “buying American” when procuring “essential” medicines and medical supplies, can have some genuinely complicated ramifications.

Like. It is estimated that 90% of generic drugs used in the U.S. are manufactured or sourced in foreign countries, primarily China and India. Bringing all of this activity to the U.S. cannot occur at the snap of Trump’s fingers, a consideration that is especially important given that many of the products currently used to treat COVID-19 are manufactured abroad. Not a great time to cut this supply chain summarily.

And. There will likely be cost considerations. Trump’s order allows for the Government to pay up to 25% more for U.S. products. The implications of this for the average consumer are yet to be seen.

But. There will clearly be some benefits resulting from this transition. It is arguably scary to have the supply chain of our essential drugs dependent on countries such as China, that could cut us off in a snit.  

And. The FDA’s lack of ability to control quality as well “over there” as “over here” has led to some significant problems, including patient deaths.

Finally, drug manufacturing jobs returning to the U.S. should clearly be of benefit to our economy.  

Bottom Line. Whatever the complications or how many, be they good and/or bad, the order has been signed. Keep your eyes on this one!

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