White House: Trump signs order to reduce regulatory barriers to domestic pharmaceutical manufacturing

White House: Trump signs order to reduce regulatory barriers to domestic pharmaceutical manufacturing

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U.S. President Donald Trump signed an executive order on Monday to streamline regulations surrounding pharmaceutical manufacturing in the United States. The Washington Post reported that the new order directs the U.S. Food and Drug Administration (FDA) to reduce the time it takes to approve pharmaceutical manufacturing plants in the country and increase fees for inspections at foreign manufacturing plants [1].

The move aims to encourage domestic drug manufacturing and reduce reliance on foreign sources. This comes at a time when several pharmaceutical companies are expanding their domestic production capabilities to mitigate the impact of trade policies, such as tariffs imposed by the Trump administration.

Biopharmaceutical giant Merck (NYSE: MRK) is among the companies taking significant steps to bolster domestic production. The company has broken ground on a $1 billion pharmaceutical manufacturing facility in Wilmington, Delaware. Known as Merck Wilmington Biotech, this 470,000-square-foot project will enable the launch and commercial production of next-generation biologics and therapies [2].

The facility will be the Rahway, N.J.-based company’s first domestic site for producing cancer treatment drug Keytruda. Merck's decision to build this new biologics facility in Wilmington demonstrates its commitment to advancing U.S. manufacturing and partnering in communities where its employees live and work. The facility is expected to create more than 500 full-time roles and roughly 4,000 construction jobs. The laboratory component is expected to be fully operational by 2028, with production of experimental drugs anticipated to start by 2030 [2].

Kimberly-Clark, a leading producer of household and sanitary articles, has also announced plans to invest $2 billion over the next five years to enhance its manufacturing capabilities in the United States. The company aims to bolster local production in response to evolving trade policies under President Trump. This substantial investment will be directed towards developing an advanced manufacturing facility in Warren, Ohio, and expanding a distribution center in South Carolina. The company anticipates the creation of over 900 jobs in industrial automation and advanced manufacturing [3].

These investments by Merck and Kimberly-Clark highlight the broader trend of companies seeking to strengthen their domestic manufacturing bases in response to changing trade policies and regulatory environments. As the U.S. pharmaceutical and consumer goods industries continue to adapt to these shifts, investors should closely monitor the impact of these regulatory changes and company-specific expansions on market dynamics and stock performance.

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RD1GN:0-trump-to-sign-order-to-encourage-domestic-drug-manufacturing-wapo-reports/
[2] https://rebusinessonline.com/merck-breaks-ground-on-1b-pharmaceutical-manufacturing-facility-in-wilmington-delaware/
[3] https://www.indexbox.io/blog/kimberly-clark-to-invest-2-billion-in-us-manufacturing-expansion/