“Buy American” Mandates Are a Bad Prescription—Especially during a Pandemic

The Trump Administration is reportedly poised to issue an executive order that would affect the production of medicines, FDA-regulated emergency medical countermeasures, and active pharmaceutical ingredients. This is a terrible idea, especially during a pandemic.

The medical industry relies on an increasingly global supply chain. Placing restraints on that supply chain would disrupt the flow of life-saving medicines to Americans and create shortages. This, in turn, would lead to more people getting sick and more people dying.

A “buy American” mandate would result in higher costs of medicines—exactly the opposite outcome that policymakers have long promised American consumers. In the bigger picture, the United States would become less competitive and would experience less economic growth.

Such a mandate would also result in retaliatory mandates being imposed by other nations. This means that American manufacturers would suffer from contracted markets. Then, patients globally would be suffering from a lack of needed medicines. 

All of this is taking place before the backdrop of the coronavirus crisis—a time when the healthcare delivery system is already under stress. To require any reorganization beyond what is necessary to combat the coronavirus would be irresponsible and unworkable.

We therefore call upon President Trump to abandon any plan to impose “buy American” policies on the pharmaceutical industry in our country. Impeding the flow of trade in our globally interdependent society—especially for vital medicines—would be unconscionable.