September 30, 2021

Associations Urge Government Action on Supply Chain Challenges

2021 09 NEMA supply chain1.jpg

NEMA and three other organizations implore immediate action relating to tariffs, logistics, semiconductors and rising costs

The National Electrical Manufacturers Association (NEMA) – is among four major manufacturing associations that are pressing for immediate action by the U.S. government to address supply chain challenges as outlined in a newly released white paper.

Along with the Association of Home Appliance Manufacturers (AHAM), the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), the North American Association of Food Equipment Manufacturers (NAFEM), NEMA is encouraging government intervention to address many of the following issues:

Section 301 China tariffs
Section 232 steel and aluminum tariffs
Supply chain concerns
Labor shortages
Increased costs for shipping containers
Increased shipping times
Semiconductor shortages

The paper explains how supply chain disruptions, which are compounded by trade distortions and the COVID-19 pandemic, are hurting the competitiveness of U.S. manufacturers and stalling the U.S. economic recovery.

The paper acknowledges that many supply chain issues will require long-term solutions, but the coalition also requested immediate relief from policymakers through tariff removal and fair allocation of semiconductors to all industries.

Some of the white paper’s calls-to-action include:

Remove Section 232 tariffs on steel and aluminumimports, at least on our allies. At a bare minimum, we suggest a revision of the product exclusion process such that exclusions are transparent and available to all downstream manufacturers of the material, rather than only to the importer of record.
Remove Section 301 tariffs on Chinese imports, or at least renew all of the previously granted expired exclusions.
Ensure that semiconductor supply is fairly and transparently allocated across industry sectorsand that the Administration does not—explicitly or implicitly—favor any one sector.

Read the entire white paper here »