Biden administration launches supply chain task force to tackle disruptions

The Biden administration on Tuesday announced the formation of a new task force to address supply chain disruptions, which will include Commerce Secretary Gina Raimondo, Transportation Secretary Pete Buttigieg and Agriculture Secretary Tom Vilsack.

The task force is set to minimize the impacts of supply chain disruptions on workers, consumers, families and businesses, according to a senior administration official. It will address near-term supply and demand mismatches and bring together stakeholders to help alleviate bottlenecks and supply constraints.

“Pandemic-related shifts in demand and supply from semiconductors to single family homes are putting pressure on supply chains as the US economy reignites,” an official said, adding that consumers are experiencing price increases and extended delivery times. 

The administration is also establishing a trade strike force led by the U.S. trade representative to combat unfair trade practices. The group would propose enforcement actions against unfair foreign trade practices that have negatively impacted critical supply chains. 

The administration also released findings on a review of semiconductor manufacturing and advanced packaging, large capacity batteries like those for electric vehicles, critical minerals and materials and pharmaceuticals and active pharmaceutical ingredients following President Biden’s executive order in February that directed a 100-day supply chain review. 

Following the review, the Department of Health and Human Services, under the Defense Production Act, will establish a consortium for advanced manufacturing and onshoring of domestic essential medicines production, as well as commit about $60 million included in the American Rescue Plan to increase domestic manufacturing. 

The Department of Energy will release a plan to develop a domestic lithium battery supply chain and the Department of the Interior will establish a working group to identify sites where critical minerals could be produced and processed in the U.S.

Additionally, the Department of Commerce will facilitate information flow between semiconductor producers and suppliers and the Department of Labor will announce more than $100 million in grants to support state-led apprenticeship expansion efforts.