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The longshoremen strike at East and Gulf Coast ports is doing economic damage to the U.S., and Congress must now urge President Biden to intervene, the NAM told congressional leaders Tuesday.

What’s going on: “The strike at East Coast and Gulf Coast ports threatens U.S. manufacturing competitiveness and the supply chains upon which Americans depend,” NAM President and CEO Jay Timmons told House Speaker Mike Johnson (R-LA) Senate Minority Leader Mitch McConnell (R-KY), Senate Majority Leader Charles Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY).

• “Manufacturers have called on President Biden to use his authority under the Taft-Hartley Act to limit the disruption. We respectfully ask that you also urge him to step in.”

Why it’s important: The strike jeopardizes $2.1 billion per day in trade and has the potential to reduce gross domestic product by up to $5 billion per day, according to NAM calculations.

• In a recent NAM Manufacturers’ Outlook Survey, more than one-third of manufacturers cited supply chain issues as their top business challenge, “and the strike will significantly compound those challenges,” Timmons continued.
• In recent weeks, manufacturers across industries—from essential goods such as food and pharmaceuticals to automotive and electronics—have told the NAM of their deep concerns about a protracted labor stoppage.

Timmons on TV: “About two-thirds of all of our exports go out of these East Coast ports,” Timmons told Maria Bartiromo on Fox Business’ “Mornings with Maria” today. “Think of autos … think pharmaceuticals, think of medical equipment. Those are things that help enrich the American manufacturing workforce.”

What should be done: Under the Taft-Hartley Act of 1947, a U.S. president has the authority to intervene in labor disagreements that “impinge on commerce and imperil national health and safety,” Timmons continued.

• The current strike meets those criteria, so President Biden should invoke the measure to reopen the ports. Former President George W. Bush did exactly that to reopen West Coast points of entry in 2002. 

However … A return to negotiations is the optimal path forward, Timmons told Bartiromo.

• “Taft-Hartley does not have to be invoked for the union and the [U.S. Maritime] Alliance to agree that the longshoremen can come back to work while negotiations continue,” he said. “That’s what we need to see. If this goes on for longer than a week, we’re going to see some severe disruptions to the supply chain.”

The final say: The bottom line, Timmons told Congress, is that “American businesses and families cannot afford this strike after years of inflation and supply chain disruptions. We ask that you join manufacturers in calling on President Biden to intervene. And should the impasse continue, we ask that you consider further actions to bring about a swift resolution.”