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The US invoked Defence Production Act, 1950

The US invoked Defence Production Act, 1950 

The President of the United States of America, Donald Trump has invoked the Defence Production Act to direct the Multinational Corporation, General Motors, to manufacture ventilators for COVID-19 patients.

Key Points:

  • Originally the act was enacted in response to the Korean War in 1950.
  • It gives the President powers to frame regulations, and make businesses to accept and prioritize contracts necessary for the defence of the country.
  • Under the act, the then President Harry S. Truman set up defence mobilization and also imposed price controls and regulated heavy industries.
  • The Act was also invoked by President Barack Obama in 2011 to extract information about the use of foreign-manufactured hardware and software in the networks of the companies from telecommunication industries.
  • Presently, trade advisor Peter Navarro has been appointed by President Donald Trump to coordinate the government's efforts in purchasing and distribution of emergency medical supplies, ranging from ventilators to protective equipment for health care workers.
  • The Act was invoked to use the full authority of the federal government to fight the Coronavirus pandemic.

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