June 16, 2022
Senate Finance subcommittee holds supply chain hearing
Business representatives, a think tank, and Senate Finance Committee members of both parties aired recommendations for improving supply chain challenges during a subcommittee hearing June 15, including trying to shape the USICA-America COMPETES conference committee and recommending trade policy changes with the shared goal of increasing manufacturing of key goods either in the United States or US-friendly nations rather than relying on foreign adversaries.
Chairman Thomas Carper (D-DE) said: "[W]hile we know that the tremendous supply chain backlogs that we are seeing today come largely from the economic shock of the pandemic, many systemic vulnerabilities existed long before COVID. Fundamental weaknesses in our global logistics systems are the result of a decades-long focus on supply chain efficiencies, 'just in time' manufacturing, and a reliance on foreign adversaries for a wide array of goods. The result is a system so brittle and fragile that it cracked under the pressure of the worst pandemic we've endured in over 100 years." Ranking Member John Cornyn (R-TX), who is a USICA/America COMPETES conferee, inquired about the proper balance between outbound investment and domestic investment.
Additional information is available in the attached Tax Alert.
Supply chain hearing