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The directive calls for building a Strategic Active Pharmaceutical Ingredients Reserve, updating the essential medicines list, and prioritizing US-made APIs.
Yesterday, President Trump signed an executive order (EO) that’s intended to provide a resilient domestic supply chain for essential medicines in the United States, as first reported by Reuters.1 This would involve filling the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) with critical drug components.
Per the EO fact sheet,2 the Office of the Assistant Secretary for Preparedness and Response (ASPR)—located within the Department of Health and Human Services—is to create a list of 26 drugs fundamental to national health and security.
Essentially, the order directs the ASPR to secure a six-month supply of critical APIs (preferably from domestic sources) for placement in the SAPIR, update the 2022 list of 86 essential medicines, and propose a plan to obtain and store a six-month API supply for those drugs.
“Restoring capacity for domestic production of essential pharmaceutical products is essential to safeguarding national health and security against global supply chain disruptions,” the EO fact sheet noted. It added that only about 10% of APIs for US prescription drugs are produced domestically, creating vulnerabilities for foreign supply chain disruptions.
This news comes at a time in which a potential 25% tariff on the pharma sector could be imminent. Trump even stated that these levies on pharmaceutical imports could ultimately reach up to 250%, marking a new high.3
In fact, a report indicates that drug manufacturers sharply increased their imports of APIs from global sources soon after Trump began discussing tariffs. According to an Investopedia article, in March, the US imported $50.4 billion worth of pharmaceutical preparations, representing the highest of any product category and marking a 71% increase from February 2025.4 This was largely in anticipation of Trump’s proposed tariffs, which have not yet taken effect and could still be weeks away.5
In that vein, AbbVie also revealed that it would be investing $195 million investment into its North Chicago, IL manufacturing facility as the company looks to grow its domestic API production in the United States.2 The plant’s construction is scheduled to begin this fall, with full operations scheduled for 2027.
The facility will be growing AbbVie's current US production footprint, which is responsible for more than 6,000 jobs spanning 11 manufacturing facilities, alongside and thousands of supplier jobs.
The latest development also follows AbbVie's decision to financially commit more than $10 billion of capital in the US toward manufacturing services and increasing capacity, adding to the existing pharma manufacturers that have starting reshoring the production processes back to the US to avoid steep tariffs. This includes a combined $53 billion by Regeneron and Roche to improve their manufacturing and R&D infrastructure, $1 billion by Merck, and $2 billion by Thermo Fisher. AstraZeneca plans to invest $50 billion by 2030 in US-based drug manufacturing and R&D, marking its largest single manufacturing investment globally.3
"Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the US to support future medical breakthroughs," said Robert A. Michael, chairman and CEO of AbbVie. "This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
References
1. Trump Signs Order to Ensure 'Resilient' Supply Chain for Essential Medicines in US. Reuters. August 13, 2025. Accessed August 14, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/trump-signs-order-ensure-resilient-supply-chain-essential-medicines-us-2025-08-13/
2. Fact Sheet: President Donald J. Trump Ensures American Pharmaceutical Supply Chain Resilience by Filling the Strategic Active Pharmaceutical Ingredients Reserve. The White House. August 13, 2025. Accessed August 14, 2025. https://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-ensures-american-pharmaceutical-supply-chain-resilience-by-filling-the-strategic-active-pharmaceutical-ingredients-reserve/
3. Saraceno N. AbbVie Invests $195 Million to Expand Stateside API Manufacturing. Reuters. August 13, 2025. Accessed August 14, 2025. https://www.pharmaceuticalcommerce.com/view/abbvie-invests-195-million--expand-stateside-api-manufacturing
4. Basta N. Pharma Wholesalers: Looking for Growth. Pharmaceutical Commerce. August 14, 2025. Accessed August 14, 2025. https://www.pharmaceuticalcommerce.com/view/pharma-wholesalers-looking-for-growth
5. Hollan M. Pharma Tariffs Announcement Still Weeks Away, New Report Says. Pharmaceutical Executive. August 13, 2025. Accessed August 14, 2025. https://www.pharmexec.com/view/pharma-tariffs-announcement-still-weeks-away-new-report-says
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