On February 24, 2021, President Biden signed an Executive Order entitled “Executive Order on America’s Supply Chains” (the “Order”). Among other things, the Order is an initial step toward accomplishing the Biden Administration’s goal of building more resilient American supply chains that avoid shortages of critical products, facilitate investments to maintain America’s competitive edge, and strengthen the country’s national security posture. The Order imposes no new regulatory obligations on industry, but rather outlines a process for federal departments and agencies to assess risks to U.S. supply chains. The first set of reviews focusing on four critical product areas will take place over a 100-day period, while the second set of reviews targeting a broader set of key sectors will be completed over a one-year period. The Order raises a number of key questions that may impact future business plans for companies operating in the industries or sectors to be reviewed.
Additional details on the Order and its impact are available in a client alert that we published on March 2, available here.