Trump activates Defense Production Act for ammunition and supply chains

(Patria) - U.S. President Donald Trump invoked the Defense Production Act to address supply constraints and development of weapons for ammunition production and supply chains, according to a memorandum released on Tuesday, Reuters reported late last night.

The move comes amid growing concern in Washington over the ability of U.S. weapons manufacturers to meet demand.

Solid-fuel rocket motors, igniters and guidance systems are among the most critical and capacity-constrained subsystems needed for weapons production, both for legacy systems and future modernization programs.

“I hereby determine that there are conditions that may pose a direct threat to national defense or its readiness programs,” Trump said in a memorandum addressed to the Pentagon chief on June 11.

He cited “limited production capacity, fragile supply chains, long-standing dependencies and related production bottlenecks.”

The memorandum delegates authority to the Secretary of Defense to enter into voluntary agreements with private industry aimed at strengthening the defense industrial base.

The Defense Production Act allows the president or those delegated authority to consult with industry representatives, businesses and other stakeholders to establish voluntary agreements that will help ensure national defense, but only when conditions exist that may pose a direct threat.