President Donald Trump on Friday invoked the Defense Production Act (DPA) to stop U.S. companies from exporting N95 respirators and other critical personal protective equipment and medical supplies, to ensure that American hospitals and health care facilities are equipped to weather the CCP virus pandemic.
“The ability of wartime profiteers to purchase domestic supplies of scarce and critical materials, hoard them while they engage in profiteering and speculation, and then export them can generate foreign demand, and lead to price gouging. This conduct denies our country and our people the materials they need to win the war against the virus,” the president wrote.
“Wartime profiteers may include a large army of speculators and warehouse operators operating in the dark corners of our markets,” he added. “They may also include some well-established PPE distributors with the ability to unscrupulously divert PPE inventories from domestic customers, such as hospitals and State governments, to foreign purchasers willing to pay significant premiums.”
At a White House briefing, Trump said that acting Homeland Security chief Chad Wolf will work with the Federal Emergency Management Agency (FEMA) to prevent the export of the critical supplies.
“We need these items immediately for domestic use. We have to have them,” Trump said.
The Defense Production Act, passed in 1950, grants the president the power to expand industrial production of crucial materials or products for national security and other reasons.
“We have already leveraged the DPA to stop the hoarding and price gouging of crucial supplies,” the president said.
Trump said the federal government is providing about 8.1 million N95 respirators, 200,000 of which have been given to New York City.
“P Act. all the way,” Trump continued, with P apparently referring to the Defense Production Act. “Big surprise to many in government as to what they were doing—will have a big price to pay!”