• President Trump invokes emergency economic powers to impose broad tariffs and mandate onshoring of critical supply chains.
  • New executive order targets pharmaceutical supply chain resilience, establishing programs to fill the strategic active pharmaceutical ingredients reserve.
  • Administration proposes repurposing part of the U.S. plutonium stockpile for advanced nuclear reactor fuel production.

President Donald Trump has declared a national emergency to justify sweeping tariffs and supply chain mandates, citing threats to national and economic security from reliance on foreign suppliers. The administration is wielding the International Emergency Economic Powers Act and Section 232 of the Trade Expansion Act to reshape U.S. industrial policy.

"We have an obligation to make sure the U.S. is stocked up," Trump said in recent remarks, framing the actions as necessary to correct "large and persistent" trade deficits exposed during global disruptions.

The centerpiece includes a base 10% tariff on all imports, with individualized, higher tariffs for nations where the U.S. runs the largest deficits. Most notably, the administration has imposed a 100% tariff on branded, patented imported pharmaceuticals—a move that has sparked immediate debate about potential drug cost increases.

Efforts to restructure critical supply chains have accelerated with an executive order specifically targeting pharmaceutical resilience. The order establishes federal programs to "fill the strategic active pharmaceutical ingredients reserve" and reduce dependence on overseas sources, according to documents reviewed.

Simultaneously, the administration is moving to repurpose part of the U.S. plutonium stockpile for advanced nuclear reactor fuel production. The proposal aims to power infrastructure such as AI data centers and enhance domestic nuclear capacity, though environmental and safety advocates have expressed concern about proliferation risks.

Without these measures, administration officials argue, the United States would remain vulnerable to supply chain disruptions that could cripple critical industries. The moves have drawn mixed reactions from industry groups, with domestic manufacturers largely supportive while importers and sectors reliant on global value chains voice concerns about higher costs and potential shortages.

A spokesperson for the Pharmaceutical Research and Manufacturers of America declined to comment specifically on the 100% tariff but noted that "any supply chain shifts require careful planning to avoid disruptions to patient access."

The tariff measures are expected to face legal challenges, and administration officials acknowledged privately that implementation could trigger retaliatory measures from trading partners. Similar strategies are being pursued in Europe and Asia, where governments are increasingly focused on supply chain "de-risking" and critical materials stockpiling.

Correction: An earlier version of this article misstated the specific statute being used for the pharmaceutical tariffs. The administration is using both the International Emergency Economic Powers Act and Section 232 of the Trade Expansion Act.