Biden Admin Working 'Closely' With Lawmakers on Countering Economic Coercion Bill

Senators are working closely with the Biden administration, and believe they have its support, on a bill that could strengthen the ability of the U.S. to respond to economic coercion by foreign countries (see 2302080068). The bill, reintroduced this week by Sens. Todd Young, R-Ind., and Chris Coons, D-Del., could allow the president to lower duties on non-import-sensitive goods made by a country that lost exports due to coercive actions; increase duties on imports from the "foreign adversary" committing the coercion; and allow the U.S. to more easily facilitate trade with the coerced parties.

Speaking during a Feb. 9 Senate Foreign Relations Committee hearing, Young said his “sense” is that “the administration is on board with this approach.” Deputy Secretary of State Wendy Sherman, also speaking during the hearing, said her team is “in very close touch” with Young and Coons and believes “this is a critical area.”

Sherman also noted the U.S. has supported Lithuania (see 2212070028), Australia (see 2011120007) and other countries that have been targeted by Chinese economic coercion. “We look forward to continuing to work closely with you on this,” she told Young.