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The Biden Administration Flirts with Section 232. It Will Backfire. (CATO)

작성 2021.06.11 조회 463

The Biden Administration Flirts with Section 232. It Will Backfire.

 

 

 

 

 

June 10, 2021

Inu Manak and Scott Lincicome

 

 

The Biden administration’s new report on U.S. supply chain “vulnerabilities” contains a lot of bad-but-expected ideas, but it was both surprising and dismaying to see it tacitly endorse arguably the worst trade law on the books.

 

The 250-page report resulted from President Biden’s February 2021 Executive Order calling for an interagency review “to strengthen the resilience of America’s supply chains.” Given the administration’s past statements and the current winds in Washington (blowing towards industrial policy and away from economic openness), the report’s contents heavy on subsidies, new government programs, and domestic content requirements were generally unsurprising and will surely be the subject of future work.

 

One issue, however, warrants immediate mention and scorn: a recommendation that the administration consider using Section 232 of the Trade Expansion Act of 1962, which gives the president broad authority to restrict imports deemed to be a threat to “national security,” to address one specific supply chain concern. 

 

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