White House Launches Supply Chain Initiative

Nov. 27, 2023
By: David G. Forgue

On November 27, 2023 the White House convened the first meeting of the White House Council on Supply Chain Resilience. As many will remember, supply chain disruptions during the pandemic led to shortages of needed supplies and helped stoke consumer inflation in the United States. This council is intended to ensure that critical U.S. supply chains are more resilient in the face of the next shock to the system.

As part of the meeting the President announced 30 new actions intended to strengthen U.S. supply chains. Significantly, the supply chains that are the focus of this action are those “critical to America’s economic and national security.” So, definitely computer chips, but maybe not toilet paper. Stock up at your discretion.

Two common themes across the resilience action are (1) improving information sharing within the United States government, and (2) mapping risk before disruptions occur. With respect to information sharing, the Council on Supply Chain Resilience will include a substantial portion of the Cabinet, as well as representatives from other agencies. In addition, Commerce is creating a Supply Chain Center to collaborate with industry and other agencies, while Transportation is creating a public-private partnership intended to “create a shared, common picture of supply chain networks and facilitate a more reliable flow of goods.”

With respect to risk mapping and countermeasures the Council is supposed to complete the first quadrennial supply chain review by the end of 2024 to update “criteria on industries, sectors, and products defined as critical to national and economic security.” Similarly, a new Supply Chain Resilience Center housed in Homeland Security is to address threats and vulnerabilities inside U.S. ports. Third, Energy is to develop an assessment tool to assess risk related to the potential for disruption to energy and critical mineral supplies. In the defense area Defense is to create a Supply Chain Mapping Tool to analyze supplier data for U.S. weapons systems. Finally, Labor will continue to be tasked with identifying potential labor rights violations.

Underpinning these efforts are ongoing programs under the CHIPS and Science Act, the Inflation Reduction Act, and the Bipartisan Infrastructure Law. In light of this underpinning, additional guidance with respect to Buy America/Buy American, forced labor issues, and specific efforts to ensure that medicines and drugs are manufactured in the United States or friendly countries would not be surprising. Similarly, as DHS evaluates threats inside of U.S. ports it is foreseeable that new or different C-TPAT requirements, security measures, and similar changes could be made.

Depending on the sensitivity of the products a company deals in, the 30 measures (not all of which we covered) could have a significant impact on requirements. Given the wide range of agencies asked to take a role in supply chain evaluation and management it is also possible that direction will come from agencies not normally considered to be “trade related.” Nevertheless, those agencies will have new authority. If you have questions about your imports, supply chain, or other issues do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP.