Manufacturing + Trade

Trump announced broad tariffs on most imports on April 2, referred to as “Liberation Day,” as part of a longstanding policy objective. While some of the more severe tariffs were paused for 90 days, a 10% baseline tariff remained in effect. The Court of International Trade later ruled the tariffs unlawful, finding that the International Emergency Economic Powers Act (IEEPA) does not authorize unlimited tariff authority. That ruling has since been temporarily suspended by the Court of Appeals pending further review. Additional legal challenges, including a case brought by the state of California, are ongoing and could lead to further judicial rulings. These cases may become more significant if the initial ruling is overturned or if courts issue conflicting decisions, which could prompt review by the Supreme Court.

On Tuesday evening, the Senate kicked off debate on the CHIPS-Plus bill. Senate Majority Leader Chuck Schumer (D-NY) filed a bipartisan amendment Tuesday night after the Senate voted to proceed on the bill by a margin of 64 (including 16 Republicans) to 34. The over 1,000-page amendment includes tens of billions for the National Science Foundation (NSF), the Commerce Department (DoC), and the National Institute of Standards and Technology (NIST). Senator Schumer said that if the bill got 60 or more votes during the Tuesday evening test vote, he would be open to expanding the legislation beyond his original vision of a narrow CHIPS-Plus bill.

On Thursday, September 29, the Atlantic Council hosted a conversation with U.S. Secretary of Commerce Gina Raimondo on the strategic competition between the U.S. and China, particularly in the Critical and Emerging Technologies (CETs) space, with a specific focus on implementing the CHIPS and Science Act of 2022.

On Wednesday, October 12, the International Trade Administration’s (ITA) Advisory Committee on Supply Chain Competitiveness (ACSCC) held a virtual meeting that covered various supply chain challenges and how the Department of Commerce, in particular, is responding to such challenges. This readout outlines highlights from the meeting, which featured remarks from Assistant Secretary of Commerce for Industry & Analysis Grant Harris, Secretary of Commerce Gina Raimondo, National Economic Council Director Brian Deese, and Assistant Secretary of Commerce for Global Markets Arun Venkataraman.

ACSCC will likely meet next in early February 2023 and hold three 2023 meetings.