In this episode of the NextWave Global Trade podcast series, EY Global Leaders Doug Bell and Courtney McCaffrey explore the US industrial policy and its impact on trade.
The COVID-19 pandemic has exposed the soft underbelly of global supply chains. To strengthen global supply chains, promote economic stability and improve national security, the US Government has announced a new industrial policy. Under the new policy, the Biden Administration will be focusing on two key areas: digital technology and climate crisis. There is likely to be an increased government involvement in promoting the domestic production of solar panels, wind turbines and energy-efficiency technologies. Such actions can help reshape global trade and set the stage for investment, infrastructure and innovation.
- While some companies have developed resilient supply chains in response to the COVID-19 pandemic, others are still struggling. Political risks are making supply chains more complex.
- Companies and governments will need to focus more on strengthening supply chains. The outcome of industrial policies will be a balance between policy goals and economic imperatives.
- Future trade policies will be more targeted. This shift will be both good and bad for companies. It will be good because not many companies will get affected by new tariffs. However, those getting affected might suffer due to higher prices or reduced supplier options.
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Duration 19m 39s
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