Trump Signs Executive Order to Boost U.S. Drug Manufacturing Ahead of Pharma Tariffs

President Donald Trump on Monday signed an executive order aimed at revitalizing domestic pharmaceutical production, just weeks ahead of his administration’s planned tariffs on imported medicines.

The directive instructs the Food and Drug Administration (FDA) to fast-track approval processes for new U.S.-based drug manufacturing plants by eliminating redundant requirements and offering early support to companies planning stateside facilities. It also mandates increased inspection fees for foreign factories and empowers the FDA to publicly name non-compliant overseas facilities.

“We want to be able to make our own [medicines],” Trump said. “This is a national security priority.”

The order further calls on the Environmental Protection Agency (EPA) to expedite construction permits for pharmaceutical facilities, while directing federal agencies to coordinate approvals through a single point of contact, assisted by the Office of Management and Budget.

The initiative comes amid concerns over U.S. dependence on foreign drug supply chains, especially from China and Europe, where lower labor costs have driven pharmaceutical production abroad. According to the FDA, U.S. pharmaceutical manufacturing has declined for decades, with 73% of drug imports in 2023 coming from Ireland, Germany, and Switzerland alone.

The administration also revealed it has launched a Section 232 national security investigation, a move seen as a precursor to imposing tariffs. Trump confirmed that pharmaceutical-specific levies would be announced within two weeks.

While companies like Eli Lilly, Johnson & Johnson, and AbbVie have already begun expanding U.S. operations, some industry leaders are wary. Pfizer CEO Albert Bourla warned last week that tariff threats could hinder investment in domestic R&D and production.

Industry analysts note that reshoring could strengthen supply chains but might also raise drug prices due to increased manufacturing costs.

The FDA, under Commissioner Marty Makary, will also begin conducting unannounced inspections of foreign drug sites to ensure stricter compliance.