Washington — Commerce Secretary Gina Raimondo predicted Sunday that it may very well be a while earlier thanare alleviated, even because the Biden administration works to handle the backlogs at ports on the West Coast.
In an interview with “Face the Nation,” Raimondo mentioned the availability chain points are short-term, however a “direct outcome” of the COVID-19 pandemic, as some industries had been pressured to put off employees and Individuals had been advised to remain of their properties to mitigate the unfold of the coronavirus.
“Final 12 months throughout COVID, we shut our financial system down. You understand, I used to be the governor on the time. We shut down Rhode Island’s financial system. We’ve by no means seen that earlier than,” she advised “Face the Nation.” “In order that meant factories closed. Individuals went house. You’ll be able to’t simply flip the financial system again on in a single day. So, it takes slightly little bit of time. I’ll say we’re making progress.”
To assist relieve the disruptions, President Biden introduced earlier this month that the Port of Los Angeles could beto alleviate the congestion there and on the Port of Lengthy Seashore. Collectively, the 2 ports account for 40% of all delivery containers getting into the U.S.
Raimondo acknowledged that there are “backups” on the Port of Los Angeles regardless of the 24/7 operation, and warned “this isn’t one thing that may be fastened in a single day.”
“Basically, provide chains and logistics are run by the personal sector. Individuals say to me, ‘Will Christmas presents be delivered?’ To which I say, ‘Name FedEx,’” she mentioned. “You understand, that isn’t what the federal government does. What we’re doing, and the president is dedicated to this, we’re utilizing each device in our toolbox to be supportive, to assist to unstick the ports.”
Many industries are additionally battling a, or microchips, which can be in lots of digital units, together with smartphones, automobiles and home equipment. To assist handle the chip scarcity, Mr. Biden included in his $1.75 trillion social coverage and local weather framework new incentives to carry manufacturing of semiconductors again to the U.S.
“This can be a fund that may come to the Division of Commerce. It’s a $52 billion set of incentives to rebuild the home provide right here,” Raimondo mentioned of the so-called superior manufacturing funding credit score. “The day after Congress passes this it could come to us and we will get to work.”
Raimondo mentioned the Commerce Division is working to incentivize home manufacturing of semiconductors after a lot of it was moved to Asia.
“We wish to make chips in America, so we’re incentivizing firms to try this, creating jobs each step of the way in which,” she mentioned, including that the Biden administration isn’t mandating home manufacturing of the semiconductors.
Raimondo additionally rejected the suggestion that implementation of COVID-19 vaccine mandates be pushed again after the vacation season to make sure there are not any labor shortages stemming from employees who don’t wish to comply.
“It will be a mistake,” she mentioned. “You understand, this 12 months we’re on path to have the strongest GDP progress in many years. We had a blip within the third quarter. Why? Delta variant. The faster everybody will get vaccinated, the higher our financial system might be again on monitor, the faster all people will get again to work.”