CPA Supports Biden Executive Order on U.S. Supply Chains

Important step toward rebuilding domestic manufacturing capacity

Washington. The Coalition for a Prosperous America (CPA) today praised a new executive order by President Biden intended to “strengthen the resilience of America’s supply chains.” Specifically, the order will require an immediate study of domestic U.S. manufacturing capacity in key industries. The order further requires federal departments and agencies to deliver full supply chain assessments within one year for critical sectors such as pharmaceuticals, active pharmaceutical ingredients, semiconductors, and electric vehicle batteries.

“President Biden’s executive order represents an important and far-reaching step,” said CPA Chair Zach Mottl. “For years, America’s productive capacity in strategic industries has been progressively dismantled by subsidized overseas competition. As a result, the nation is now facing serious supply chain vulnerabilities—something Americans saw during the onset of the COVID-19 pandemic. The president’s order will help to identify these critical shortages and also initiate steps to reverse the current, troubling trajectory.”

The executive order formally acknowledges the host of potential geopolitical threats facing the United States. In response, it explicitly aims to “rebuild domestic manufacturing capacity, maintain America’s competitive edge in research and development, and create well-paying jobs.” CPA is particularly encouraged that the executive order recognizes the need for “reforms to domestic and international trade rules and agreements needed to support supply chain resilience, security, diversity, and strength.”

Additionally, the executive order makes clear that the administration wants to hear from domestic industry on the best means to address current shortages and production challenges.

“We’re pleased that the President and his team are moving rapidly,” said Michael Stumo, CEO of the CPA. “The administration must quickly pivot from assessment to action. In the near term, there is a significant danger that upcoming COVID recovery and infrastructure legislation could benefit industries in Mexico, Germany, or China rather than U.S. producers, especially in energy-related goods. President Biden should ignore international rules that purport to require the U.S. to spend taxpayer money on foreign goods in order to fix this problem.”

CPA has long urged a comprehensive reshoring of key U.S. industries. Read more.