IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

Yes

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 13 Jun 2017 | Removal date: open ended
Still in force

Instrument unclear

By Presidential Determination No. 2017-09 of June 13, 2017, President Trump determined, pursuant to section 4533(a)(5) of the Defense Production Act of 1950, that critical technology item shortfalls affecting adenovirus vaccine production capability; high strength, inherently fire and ballistic resistant, co-polymer aramid fibers industrial capability; secure hybrid composite shipping container industrial capability; and three-dimensional ultra high density microelectronics for information protection industrial capability are critical to national defense. According to this order, “Without Presidential action under this Act, the United States defense industrial base cannot reasonably be expected to adequately provide those capabilities or critical technology items in a timely manner.  Further, purchases, purchase commitments, or other action pursuant to section 4533 of the Act are the most cost effective, expedient, and practical alternative method for meeting the need for those capabilities or critical technology items.”

The order did not specify precisely what action might be taken in consequence of this determination. The relevant section of the Defense Production Act of 1950 grants the president an array of authorities. It provides that “[t]o create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the President may make provision” as follows:

(A) for purchases of or commitments to purchase an industrial resource or a critical technology item, for Government use or resale;

(B) for the encouragement of exploration, development, and mining of critical and strategic materials, and other materials;

(C) for the development of production capabilities; and

(D) for the increased use of emerging technologies in security program applications and the rapid transition of emerging technologies—

(i) from Government-sponsored research and development to commercial applications; and

(ii) from commercial research and development to national defense applications.

Depending on the specific actions that are taken in pursuit of this determination, the United States might or might not discriminate against foreign suppliers of these goods. For this reason, GTA classifies this presidential determination as amber.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

352 Pharmaceutical products
3002 Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micr
300220 Vaccines for human medicine
355 Man-made fibres
5402 Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.
540211 Of aramids
5503 Synthetic staple fibres, not carded, combed or otherwise processed for spinning.
550311 Of aramids
449 Other special-purpose machinery & parts
8486 Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9 (C) to this Chapter
848610 Machines and apparatus for the manufacture of boules or wafers
848620 Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits
848630 Machines and apparatus for the manufacture of flat panel displays
848640 Machines and apparatus specified in Note 9 (C) to this Chapter
848690 Parts and accessories

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