President Trump Uses Defense Production Act on 3M
Last week Trump announced that he was invoking the defense production act. In particular, he placed a ban, ordering 3M and other US companies to immediately stop exporting any critical medical supplies that are currently in production or will be produced in the next few weeks to other countries. To help get supplies sent to hospitals and medical care facilities across the United States, as many are facing severe shortages that are putting medical professionals and patients at risk. President Trump felt that all the supplies being produced in the US should be distributed locally since we are facing a global pandemic, and we are in dire need of essential medical supplies right here in the United States.
Let’s take a deep dive to understand what this all really means.
What is the Defense Production Act?
The act was put into place in 1950. It gives the President of the United States to complete control in emergency situations to direct industries and specific companies to produce products or alter where the products are being sent to aid and protect the United States. When the act is invoked, the President can expedite and expand the supply of particular products that we need during times of emergency. The law was put in place to protect the country during times of war. Although we may not be in a physical war, we are in a fight for our lives against a pandemic that we cannot control at this time.
There are three types of acts that the President can take when he invokes the defense production act.
Priority – The President can require corporations to prioritize the contracts for supplies, products, or materials that are considered necessary to defend and protect the United States.
Expansion – This form of the defense production act allows the President to create incentives for companies to produce the needed materials. This will help convince businesses to help with the production while making it worth their while.
General Provisions – This gives the government the ability to halt international agreements with private industries and foreign corporate mergers that can put our national security at risk.
Why Did Trump Invoke the Defense Production Act
The President placed a ban on 3M and other US-based companies from exporting any critical medical care supplies (gloves, N-95 respirators, surgical masks, etc.) to other countries. With a mass shortage of these supplies in the US, he says they all need to be used locally to save the lives of people here. However, 3M feels this could be harmful and create significant humanitarian implications; yet, they have no choice but to comply at this point. By invoking this act, he used the general provisions portion to force 3M to stop exporting supplies as he felt it necessary to stop all production for exports going out of the US at this time.
Please get in touch with us at Terratori today to acquire emergency PPE