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2021-06-08

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Biden administration announces plans to strengthen critical supply chains

KEY POINTS The Biden administration will announce new actions designed to strengthen critical U.S.

Biden administration announces plans to strengthen critical supply chains

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The agency's Advanced Technology Vehicles Manufacturing Loan Program will distribute $17 billion in an effort to support new research and manufacturing efforts in the United States.\nRare earth minerals:The Department of Interior will lead a task force to identify sites wherecritical minerals could be producedand processed in the United States.\" The report said the U.S. will develop the capacity for \"sustainable production, refining, and recycling\" of the 17 rare earth metals used in cell phones, cars and magnets, while meeting high environmental standards.\nSemiconductors:As the nation grapples witha semiconductor shortage that has idled major auto manufacturing plants, the White House said it will work with the private sector to increase supply chain transparency.\nAdvanced pharmaceutical ingredients:The Department of Health and Human Services will use authority granted under the Defense Production Act to commit approximately $60 million to \"develop novel platform technologies to increase domestic manufacturing capacity for API.\"\n\nIn addition to these steps, designed to boost supplies of specific products, the administration also announced several broader initiatives.\nTo help train the workers that will be needed to staff these new projects, the White House will announce $100 million in additional grants to support state-led apprenticeship expansion efforts. The grants will be administered by the Department of Labor.\nThe Department of Energy will announce a new policy that requires awardees of DOE research and development grants to \"substantially manufacture those products in the United States.\"\nAlong with these efforts to bolster domestic supply chains, the Biden administration will also announce new steps to combat \"unfair foreign trade practices,\" which it says have contributed to the erosion of supply chains around the world.\nOne of these will be the creation of a \"trade strike force\" led by the U.S. Trade Representative's office. The strike force will aim to identify \"unilateral and multilateral\" enforcement actions the United States can take to punish countries that it believes are engaging in unfair trade practices. According to a senior administration official, the strike force will focus on developing U.S.-China trade policies.\nThe other enforcement-related action will be an evaluation, led by the Department of Commerce, of whether to initiate an investigation into neodymium magnets under Section 232 of the Trade Expansion Act.\nThe rare earth magnets are used in motors and electronics by both civilians and the military. If the investigation were to conclude that U.S. national security is threatened by foreign supplies of neodymium, it could open the door to import restrictions or tariffs.\nBiden's predecessor, Donald Trump, invoked Section 232 twice during his one term as president, citing it as his justification for imposing broad steel and aluminum tariffs. Those tariffs are still in place, and Biden has not said whether he will lift them or not.\nA senior administration official who briefed reporters emphasized that Biden's trade policy actions are fundamentally different from Trump's trade wars, because they are carefully targeted.\n\"We're not looking to wage trade wars with our allies and partners,\" said the official. \"We're looking at very targeted products where we think there are effective tools we could deploy to strengthen our own supply chains and reduce vulnerabilities.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":262,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":18,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}

Biden administration announces plans to strengthen critical supply chains

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