CPA Applauds Trump Administration for Advancing Section 232 Action on Pharmaceutical Imports to Strengthen U.S. Manufacturing and Supply Chain Security

WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today applauded the Trump administration for advancing Section 232 action on pharmaceutical imports, a critical step toward strengthening domestic production of pharmaceuticals and active pharmaceutical ingredients (APIs) and improving U.S. health security.

The proclamation recognizes that the United States remains heavily dependent on foreign supply chains for pharmaceuticals and their key inputs, particularly APIs, exposing patients and providers to supply disruptions, quality risks, and geopolitical vulnerabilities. In 2002, U.S. manufacturers produced 83.7 percent of the pharmaceuticals consumed domestically. By 2024, that number plummeted to just 37.1 percent. China alone produces roughly 80–90 percent of key antibiotic API inputs, creating a concentrated upstream chokepoint in the global supply chain. The administration’s action—focused on patented drugs and associated inputs—marks an important acknowledgment that pharmaceutical import dependence poses a national security risk.

CPA has long urged action in this area, including through its formal comments on the Section 232 investigation to the Department of Commerce outlining the national security risks posed by import dependence and the need to restore domestic production. CPA has emphasized that rebuilding U.S. pharmaceutical manufacturing requires a comprehensive approach that includes both patented drugs and generic medicines.

“Today’s action is a meaningful step toward restoring America’s ability to produce critical pharmaceuticals and APIs,” said Jon Toomey, President of the Coalition for a Prosperous America. “For too long, the United States has relied on fragile and subsidized foreign supply chains for these essential products. Section 232 gives the administration the tools to rebuild domestic manufacturing, strengthen supply chain resilience, and reduce dependence on foreign adversaries.”

While the proclamation takes important action on patented pharmaceuticals, it does not yet apply tariffs to generic drugs and their associated ingredients, which account for the vast majority of prescriptions filled in the United States. The administration has directed further review of generic imports, creating an opportunity to take additional action to address vulnerabilities across the full pharmaceutical supply chain.

CPA’s research demonstrates that reshoring generic drug and API production is both necessary and achievable. Targeted tariffs on generic drugs can support domestic production without raising costs for patients, while creating the stable market conditions needed for long-term investment. CPA has also outlined policy frameworks—modeled on successful domestic industries—that can accelerate the rebuilding of a resilient, U.S.-based pharmaceutical supply chain.

Rebuilding domestic capacity for pharmaceuticals and APIs is not only an economic priority—it is a national security imperative. These products are foundational to public health, emergency preparedness, and military readiness, and disruptions in supply can have immediate and severe consequences.

CPA has also emphasized that rebuilding domestic capacity requires aligning trade policy with healthcare policy. In recent comments to CMS and HHS, CPA urged the administration to use Medicare’s purchasing power to support U.S.-based production, noting that payment policies must reflect the true cost of domestic manufacturing and create stable demand for U.S. producers. Together with Section 232 action, these reforms can ensure that federal healthcare spending reinforces—rather than undermines—the rebuilding of America’s pharmaceutical manufacturing base.

CPA will continue working with the administration to ensure that future actions address vulnerabilities across the full pharmaceutical supply chain, including generic drugs and their key inputs.