Tag Archives: United States

U.S. manufacturing growth cooling; bottlenecks starting to abate

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. manufacturing activity grew at a slower pace in July for the second straight month as raw material shortages persisted, though there are signs of some easing in supply-chain bottlenecks.

The survey from the Institute for Supply Management (ISM) on Monday showed a measure of prices paid by manufactures fell by the most in 16 months, while the supplier deliveries index retreated further from a 47-year high touched in May.

Timothy Fiore, chair of ISM’s manufacturing business survey committee, noted that “supply and demand dynamics appear to be moving closer to equilibrium for the first time in many months.” Part of that could be because spending is rotating back to services from goods.

“Manufacturing is slowing from unsustainable boom to sustainable strength,” said Chris Low, chief economist at FHN Financial in New York.

“Moderation in supplier deliveries and prices paid indicate bottlenecks are alleviating, but both remain high enough to indicate supply-side problems persist. Still, from a markets and policy perspective, progress is important.”

The ISM’s index of national factory activity fell to 59.5 last month, the lowest reading since January, from 60.6 in June. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Economists polled by Reuters had forecast the index would be little changed at 60.9.

Seventeen out of 18 manufacturing industries reported growth in July, including machinery as well as computer and electronic products. Only textile mills reported a decline.

The ISM survey’s measure of prices paid by manufacturers fell to a reading of 85.7 last month from a record 92.1 in June, reflecting an easing in commodity prices. The drop – the largest pullback in the index since March 2020 – supports Federal Reserve Chair Jerome Powell’s contention that inflation will moderate as supply constraints abate.

The survey’s measure of supplier deliveries fell to 72.5 from a reading of 75.1 in June. The index vaulted to 78.8 in May, which was the highest reading since April 1974. A reading above 50 indicates slower deliveries.

Demand shifted to goods from services during the COVID-19 pandemic as millions of Americans were cooped up at home, straining the supply chain. Roughly half of the population has been fully vaccinated against the coronavirus, allowing people to travel, frequent restaurants, visit casinos and attend sporting events among services-related activities that were curbed early in the pandemic.

Government data last week showed spending on services accelerated sharply in the second quarter, helping to lift the level of gross domestic product above its peak in the fourth quarter of 2019.

U.S. stocks were trading higher, with the S&P 500 index near a record high as the U.S. Congress pushed ahead with a $1 trillion infrastructure bill.

The dollar fell against a basket of currencies. U.S. Treasury prices rose.

LEAN INVENTORIES

Still, anecdotes in the ISM survey suggested the supply chain was still a long way from normalizing. Machinery manufacturers said they are “having to place orders months ahead of time just to get a place in line.”

In the computer and electronics industry, manufacturers reported that “purchases continue to have long lead times due to shortages of raw materials.”

The scarcity of inputs has been well documented in the automobile industry, where a global semiconductor shortage has forced some car makers to idle assembly plants to manage their chips supply.

The ISM survey’s forward-looking new orders sub-index fell for a second straight month. But with inventories at factories very lean and business warehouses almost empty, the moderation in new orders growth is likely to reverse or remain minimal.

Businesses depleted inventories at a rapid clip in the second quarter. Stocks at retailers are well below normal levels. Economists at Goldman Sachs expect retail and auto inventories will return to normal levels in mid-2022.

Factories also hired more workers in July. A measure of factory employment rebounded after contracting modestly in June for the first time since November, though manufacturers continued to complain about the scarcity of workers.

Still, the rebound bodes well for July’s employment report, due to be released on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 880,000 jobs last month after rising by 850,000 in June.

The economy is facing a shortage of workers, with a record 9.2 million job openings. About 9.5 million people are officially unemployed.

Lack of affordable child care and fears of contracting the coronavirus have been blamed for keeping workers, mostly women, at home. There have also been pandemic-related retirements and career changes. Republicans and business groups have blamed enhanced unemployment benefits, including a $300 weekly payment from the federal government, for the labor crunch.

While more than 20 states led by Republican governors have ended these federal benefits before they were scheduled to run out in early September, there has been little evidence that the terminations boosted hiring.

The labor shortage is expected to ease in the fall when schools reopen for in-person learning, but a resurgence in new COVID-19 cases, driven by the Delta variant of the coronavirus, could make some people reluctant to return to the labor force.

(Reporting by Lucia Mutikani; Editing by Dan Burns, Nick Zieminski and Paul Simao)

Russia says U.S. asked 24 of its diplomats to leave by Sept. 3

MOSCOW (Reuters) – Russia’s ambassador to the United States said Washington had asked 24 Russian diplomats to leave the country by Sept. 3 after their visas expired.

Anatoly Antonov did not say whether the U.S. request was prompted by any particular dispute, and there was no immediate comment from Washington.

“Almost all of them will leave without replacements because Washington has abruptly tightened visa issuing procedures,” Antonov said in an interview with the National Interest magazine published on Sunday.

Moscow and Washington have long differed over a range of issues, and ties slumped further after U.S. President Joe Biden said he believed Russian President Vladimir Putin was a killer.

Tensions somewhat eased after Biden met Putin for talks on June 16, which even led to the return of some foreign investors’ money into Russian government bonds.

“We hope that common sense will prevail and we will be able to normalize the life of Russian and American diplomats in the United States and Russia on the principle of reciprocity,” Antonov said.

Antonov also said he hoped that the recently started dialogue between the United States and Russia on cybersecurity issues will continue.

“As an option, we can debate on cyber threats to arms control systems, etc.”

(Reporting by Andrey Ostroukh; Editing by Howard Goller)

Florida COVID hospitalizations surge, New York urges business push on vaccines

(Reuters) – New York’s governor on Monday urged businesses to turn away unvaccinated customers while Florida is grappling with a surge in hospitalized COVID patients, both sparked by rising cases of the Delta variant that could result in new restrictions on daily life.

Florida, whose governor has resisted mask or vaccine mandates, has one of the worst outbreaks in the nation and about one-quarter of the country’s hospitalized COVID patients, according to data from the U.S. Department of Health and Human Services.

The head of Florida’s hospital association said the current surge sent COVID hospitalizations skyrocketing to 10,000 from 2,000 in less than 30 days, although deaths have remained well below the previous peak.

“It is a much younger population that is being hospitalized today,” Mary Mayhew told MSNBC on Monday. At one Jacksonville hospital, the average age is 42, she said. “We have 25-year-olds in the hospital in intensive care on ventilators,” she told the cable network. “We’ve got to convince 25-year-olds, 30-year-olds, that this is now life-threatening for them.”

New York Governor Andrew Cuomo also sounded the alarm, urging but not mandating bars, restaurants and other private businesses to require all customers be vaccinated before entering. The Democratic governor also said that vaccines could become mandatory for nursing home workers, teachers and healthcare workers if case numbers do not improve.

“Private businesses – I am asking them and suggesting to them to go to vaccine-only admission,” Cuomo told a briefing Monday. “I believe it’s in your best business interest. If I go to a bar and I want to have a drink and I want to talk to the person next to me, I want to know that that person is vaccinated.”

Cuomo also announced that all employees of the Metropolitan Transportation Authority, which runs the trains and subways, and all the workers from his state for the Port Authority of New York and New Jersey, which oversees the region’s bridges, airports, and tunnels, would need to be vaccinated by Labor Day on Sept. 6 or submit to weekly testing.

“If you are unvaccinated the Delta variant should be a major concern to you and you should be worried about it,” Cuomo said.

The push by Cuomo marks the latest attempt by government leaders to spur reluctant Americans to get vaccinated as the Delta variant of the coronavirus surges nationwide, infecting mostly unvaccinated people.

Cuomo’s announcement comes on the heels of a decision by President Joe Biden to require millions of federal workers and contractors to show proof of vaccination or be subject to weekly or twice-weekly COVID-19 tests.

Even as cases have exploded, Governor Ron DeSantis has resisted mask mandates. Earlier this year, he and the Republican-controlled state legislature limited local officials’ ability to impose COVID-19 restrictions, and on Friday he issued an executive order barring schools from requiring face coverings when classes resume this month.

That order came days after the Broward County school board voted to require masks for students and staff. The superintendent of Miami-Dade schools had also said the district would reconsider whether to require masks in light of the surge.

Some local governments have also sought to impose public health measures despite DeSantis’ opposition. The village of Key Biscayne began requiring masks on Monday for all employees as well as any visitors to government buildings.

Both Miami-Dade and Palm Beach counties last week said that all adults would be required to wear masks when inside county facilities. Orange County, home to Disney World, has ordered all employees to get vaccinated, with an Aug. 31 deadline for the first dose.

(Reporting by Joseph Ax in Princeton, New Jersey and Nathan Layne in Wilton, Connecticut; Editing by Lisa Shumaker)

Thousands more Afghans can resettle in U.S. as refugees, says State Dept

WASHINGTON (Reuters) -Thousands more Afghans who may be targets of Taliban violence due to their U.S. affiliations will have the opportunity to resettle as refugees in the United States under a new program announced by the State Department on Monday.

Reuters exclusively reported on plans to set up the “Priority Two” refugee program, covering Afghans who worked for U.S.-funded projects and for U.S.-based non-government bodies and media outlets, earlier on Monday.

“In light of increased levels of Taliban violence, the U.S. government is working to provide certain Afghans, including those who worked with the United States, the opportunity for refugee resettlement to the United States,” the State Department said in the announcement.

“This designation expands the opportunity to permanently resettle in the United States to many thousands of Afghans and their immediate family members who may be at risk.”

The announcement of the program comes as fighting surges in Afghanistan ahead of the formal completion of the U.S. troop withdrawal at the end of this month, with the Taliban pushing to capture key provincial capitals.

U.S. President Joe Biden has faced pressure from lawmakers and advocacy groups to aid Afghans at risk of Taliban retaliation because of their association with the United States during the 20-year war.

Those who worked as employees of contractors, locally employed staff and interpreters and translators for the U.S. government or armed forces are eligible for the new designation, as well as Afghans employed by a U.S.-based media organization or non-governmental organization (NGO), the State Department said.

Secretary of State Antony Blinken will deliver remarks on the program at 2 p.m. (1800 GMT), the department said.

The new program for Afghans requires applicants to be referred by a U.S. agency or for the senior-most U.S. citizen employee of an NGO or media organization headquartered in the United States.

Once they have applied, they will be contacted by email to let them know they are in the system and will then have to make their own way out of Afghanistan to a third country, a senior State Department official said.

The process from that point involves security screening and can take from 12 to 14 months, said the official, who briefed reporters on condition of anonymity.

“We’ve already been in discussion with neighboring countries, as well as (the U.N. refugee agency), to be prepared for potential outflows,” said another official who briefed reporters, adding that it was important that Pakistan’s borders with Afghanistan remained open, while others might travel to Turkey via Iran.

That requirement differs from an existing refugee program for Iraqis, which allows Iraqis to apply directly but has been indefinitely suspended while U.S. officials pursue a sweeping fraud investigation.

The Priority Two program applies to Afghans who do not qualify for the Special Immigration Visa (SIV) program that covers interpreters and others who worked for the U.S. government, and their families.

About 200 SIV applicants whose visas are in the final stages of processing and family members flew into the United States last week at the start of an evacuation effort dubbed “Operation Allies Refuge” that could include as many as 50,000 people or more.

A second plane carrying several hundred more Afghan SIV applicants arrived overnight in the United States and they will join the first arrivals at Fort Lee, Virginia, a U.S. official said on Monday.

(Reporting by Lisa Lambert, Ted Hesson, Jonathan Landay and Idrees Ali, Simon Lewis and Daphne Psaledakis; Editing by Andrew Cawthorne, Timothy Heritage, Giles Elgood and Jonathan Oatis)

Thousands stuck in Colombia’s Caribbean amid migration surge

BOGOTA (Reuters) – Some 9,000 migrants are stranded in a Caribbean municipality in Colombia amid a surge of people passing through on their way to north America following the re-opening of international borders post-lockdown, the Colombian migration agency said.

The irregular migrants – who are mostly Haitians but also include Venezuelans and Cubans, as well as a number from African countries – are stuck in Necocli, in Colombia’s Antioquia province, migration agency director Juan Francisco Espinosa said in a virtual press conference.

“This is a recurring and historical phenomenon. Colombia is not the cause or the destination of this migration,” Espinosa said.

The migrants hope to pass from Necocli and on through the dangerous Darien Gap towards Panama and then onwards to north America, principally the United States or Canada, he added.

Though the region typically sees 30,000 migrants pass through in a normal year, Espinosa said just 4,000 people transited the region last year due to the impact of measures implemented by countries to control the spread of coronavirus.

However, with borders opening up, the level of migration in the region so far in 2021 has been much greater compared to the same period last year, Espinosa added.

“This year is presenting numbers that are absolutely alarming, where right now more than 25,000 irregular migrants have passed through this part of the country,” he said.

Some 74% of the more-than 25,000 migrants recorded passing through the region in 2021 are Haitian, a migration agency spokesman told Reuters.

Colombia reopened its land and river borders with Brazil, Ecuador, Peru and Panama in May, following a 14-month closure it used to try and curb the spread of the coronavirus pandemic.

The country opened its border with Venezuela in early June.

(Reporting by Oliver Griffin; Editing by Raissa Kasolowsky)

Pentagon chief to nudge ties with Vietnam as human rights concerns linger

By Idrees Ali

HANOI (Reuters) – U.S. Defense Secretary Lloyd Austin will on Thursday look to nudge forward security ties with Vietnam that have been slowly deepening as both countries watch China’s activities in the South China Sea with growing alarm.

Despite growing military relations, more than four decades after the Vietnam War ended in 1975, President Joe Biden’s administration has said there are limits to the relationship until Hanoi makes progress on human rights.

Vietnam has emerged as the most vocal opponent of China’s territorial claims in the South China Sea and has received U.S. military hardware, including coastguard cutters.

“(Vietnam) wants to know that the U.S. is going to remain engaged militarily, it’s going to continue its presence in the South China Sea,” said Greg Poling, with the Center for Strategic and International Studies.

Lieutenant General Vu Chien Thang, director of the Defense Ministry’s Foreign Relations Department, said on Tuesday the two sides would discuss the coronavirus and measures to “enhance maritime law enforcement capability.”

A senior U.S. defense official, speaking on condition of anonymity, said they would also sign a “memorandum of understanding” for Harvard and Texas Tech University to create a database that would help Vietnamese search for those missing from the war.

On Sunday, the United States shipped 3 million doses of the Moderna COVID-19 vaccine to Vietnam, raising the amount given by the United States, via the global COVAX vaccine scheme, to 5 million doses.

Austin will meet his counterpart along with Vietnam’s president and prime minister.

Poling said there was a limit to how fast and far the Vietnamese were comfortable with deepening ties.

Experts say there are lingering concerns in Vietnam about Biden’s predecessor, Donald Trump, withdrawing from the Trans Pacific Partnership trade pact in 2017.

“That really left a lot of countries standing at the altar for lack of a better way to put it, and especially Vietnam,” Derek Grossman, a senior defense analyst at the RAND Corporation, said.

There are also limits to how far the United States is willing to deepen relations.

As important as Vietnam is in countering China, the United States has said it needs to improve its human rights record.

Vietnam has undergone sweeping economic reforms and social change in recent decades, but the ruling Communist Party retains a tight grip over media and tolerates little dissent.

In Singapore on Tuesday, Austin said the United States would always lead with its values.

“We will discuss those values with our friends and allies everywhere we go and we don’t make any bones about that,” Austin said.

This month, Marc Knapper, Biden’s nominee to be the next U.S. ambassador to Vietnam vowed to boost security ties but said they could only reach their full potential if Hanoi made significant progress on human rights.

(Reporting by Idrees Ali; Editing by Robert Birsel)

U.S. to speed up asylum processing at border while fast-tracking deportations

By Ted Hesson

WASHINGTON (Reuters) – The Biden administration will speed up processing of asylum claims at the U.S.-Mexico border while also fast-tracking expulsions of some migrant families, according to a plan unveiled by the White House on Tuesday.

President Joe Biden, a Democrat, has reversed many of the restrictive immigration policies of his Republican predecessor, former President Donald Trump. But border arrests have risen to 20-year highs in recent months, fueling attacks by Republicans, who say Biden encouraged more migration.

The 21-point plan aims to create a “fair, orderly and humane immigration system” but notes that “won’t be achieved overnight.” Details of the plan have been previously foreshadowed by the administration in its annual budget request to Congress and other announcements.

The administration aims to speed up processing of asylum claims at the southern border by authorizing asylum officers to rule on cases, according to the plan, bypassing the back-logged federal immigration courts. A draft rule to make that change has been under review at the White House budget office since early July.

The administration also said it would use a process known as expedited removal to resolve the cases of some families caught at the U.S.-Mexico border more rapidly, potentially deporting them. However, the document provided few details about the new policy.

Two sources familiar with the move said the fast-track deportations would apply only to families that do not claim a fear of persecution in their home country.

Several of the proposals in the blueprint will likely be scrutinized by lawmakers when Homeland Security Secretary Alejandro Mayorkas testifies on the administration funding requests at a Senate committee on Tuesday.

Among the budget requests, the Biden administration is seeking funding that would allow some migrant families and other vulnerable individuals to receive legal representation as their immigration cases move through the U.S. court system.

(Reporting by Ted Hesson in Washington; Editing by Ross Colvin and Dan Grebler)

Exclusive-U.S. will not lift travel restrictions, citing Delta variant -official

By David Shepardson

WASHINGTON (Reuters) – The United States will not lift any existing travel restrictions “at this point” due to concerns over the highly transmissible COVID-19 Delta variant and the rising number of U.S. coronavirus cases, a White House official told Reuters.

The decision, which comes after a senior level White House meeting late Friday, means the long-running travel restrictions that have barred much of the world’s population from the United States since 2020 will not be lifted in the short term.

“Given where we are today with the Delta variant, the United States will maintain existing travel restrictions at this point,” the official told Reuters, citing the spread of the Delta variant in the United States and abroad.

“Driven by the Delta variant, cases are rising here at home, particularly among those who are unvaccinated and appear likely to continue to increase in the weeks ahead.”

The announcement almost certainly dooms any bid by U.S. airlines and the U.S. tourism industry to salvage summer travel by Europeans and others covered by the restrictions. Airlines have heavily lobbied the White House for months to lift the restrictions.

The United States currently bars most non-U.S. citizens who within the last 14 days have been in the United Kingdom, the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil.

The extraordinary U.S. travel restrictions were first imposed on China in January 2020 to address the spread of COVID-19 and other countries have been added since then — most recently India in early May.

Last week, the U.S. Homeland Security Department said U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least Aug. 21 — even as Canada said it would begin allowing in fully vaccinated American tourists starting Aug. 9.

Asked on July 15 at a joint appearance with German Chancellor Angela Merkel about when the United States would lift European travel restrictions, Biden said he would “be able to answer that question to you within the next several days — what is likely to happen.”

Merkel said any decision to lift restrictions “has to be a sustainable decision. It is certainly not sensible to have to take it back after only a few days.”

Since that press conference, U.S. cases have jumped.

U.S. Centers for Disease Control and Prevention (CDC) director Rochelle Walensky said Thursday the seven-day average of new cases in the United States was up 53% over the previous week. The Delta variant, which was first found in India, now comprises more than 80% of new cases nationwide and has been detected in more than 90 countries.

The White House official also cited the fact that last week, the CDC urged Americans to avoid travel to the United Kingdom, given a jump in cases.

But the official added: “The administration understands the importance of international travel and is united in wanting to reopen international travel in a safe and sustainable manner.”

The restrictions have brought heavy criticism from people prevented from seeing loved ones.

White House spokeswoman Jen Psaki on Friday said international travel is “something we would all like to see — not just for tourism, but for families to be reunited.”

But Psaki added “we rely on public health and medical advice on when we’re going to determine changes to be made.”

The Biden administration has refused to offer any metrics that would trigger when it will unwind restrictions and has not disclosed if it will remove restrictions on individual countries or focus on enhancing individual traveler scrutiny.

Reuters reported last week the White House was discussing the potential of mandating COVID-19 vaccines for international visitors, but no decisions have been made, the sources said.

The Biden administration has also been talking to U.S. airlines in recent weeks about establishing international contact tracing for passengers before lifting travel restrictions.

The White House in early June launched interagency working groups with the European Union, Britain, Canada and Mexico to look at how eventually to lift travel and border restrictions.

In January, the CDC imposed mandatory COVID-19 testing requirements for nearly all international air travelers.

(Reporting by David Shepardson; Editing by Simon Cameron-Moore)

In ‘frank’ talks, China accuses U.S. of creating ‘imaginary enemy’

By Yew Lun Tian and Tony Munroe

BEIJING (Reuters) -A top Chinese diplomat took a confrontational tone on Monday in rare high-level talks with the United States, accusing it of creating an “imaginary enemy” to divert attention from domestic problems and suppress China.

Amid worsening relations between the world’s two largest economies, Deputy Secretary of State Wendy Sherman, the second-ranking U.S. diplomat, arrived on Sunday for face-to-face meetings in the northern city of Tianjin that the U.S. State Department described as “frank and open.”

No specific outcomes were agreed and the prospect of a meeting between U.S. President Joe Biden and Chinese President Xi Jinping was not discussed, senior U.S. administration officials said following talks that lasted about four hours.

China seized the early narrative, with state media reporting on confrontational remarks by Vice Foreign Minister Xie Feng soon after the session began, in echoes of a similarly combative opening by senior Chinese officials during high-level talks in March in Alaska.

Foreign media were kept at a distance from the site of the talks, held outside of Beijing due to COVID-19 protocols, but Chinese media were permitted on the premises.

“The United States wants to reignite the sense of national purpose by establishing China as an ‘imaginary enemy’,” Xie was quoted as saying while the talks were underway.

The United States had mobilized its government and society to suppress China, he added.

“As if once China’s development is suppressed, U.S. domestic and external problems will be resolved, and America will be great again, and America’s hegemony can be continued.”

Sherman laid out U.S. concerns over China’s actions on issues ranging from Hong Kong and Xinjiang to Tibet and cyber attacks, senior administration officials said, adding that China should not approach areas of global concern, such as climate and Afghanistan, on a transactional basis.

Sherman, who also met with State Councilor and Foreign Minister Wang Yi, raised concerns including over what Washington sees as China’s unwillingness to cooperate with the World Health Organization on a second phase investigation of the origins of COVID-19, and foreign media access in China.

“The Deputy Secretary raised concerns in private – as we have in public – about a range of PRC actions that run counter to our values and interests and those of our allies and partners, and that undermine the international rules-based order,” the State Department said in a statement.

“It is important for the United States and China to discuss areas where we disagree so that we understand one another’s position, and so that we are clear about where each side is coming from,” a senior administration official said.

“Reaching agreement or specific outcomes was not the purpose of today’s conversations,” a senior U.S. official said.

PROTOCOL WRANGLE

Sherman’s China visit was added late to an Asian itinerary that included stops in Japan, South Korea and Mongolia amid wrangling over protocol between Beijing and Washington.

On Saturday, Wang had warned that China would not accept the United States taking a “superior” position in the relationship, a day after China unveiled sanctions on former U.S. Commerce Secretary Wilbur Ross and others.

Relations between Beijing and Washington deteriorated sharply under former U.S. President Donald Trump, and the Biden administration has maintained pressure on China in a stance that enjoys bipartisan support but threatens to deepen mistrust.

“When both countries see each other as an enemy, the danger is that it becomes a self-fulfilling prophecy,” said Cheng Xiaohe, a professor of international relations at Renmin University in Beijing.

Monday’s talks came amid frayed relations between Beijing and Washington that have worsened in the months since an initial diplomatic meeting in March in Anchorage, the first under the Biden administration.

At the Alaska meeting, Chinese officials, including Wang, railed against the state of U.S. democracy, while U.S. officials accused the Chinese side of grandstanding.

(Reporting by Yew Lun Tian, Cate Cadell and Tony Munroe; Editing by Lincoln Feast, Clarence Fernandez and Giles Elgood)

United States buys 200 million more doses of Pfizer/BioNTech COVID-19 vaccine

(Reuters) -Pfizer Inc and German partner BioNTech said on Friday the U.S. government has purchased 200 million additional doses of their COVID-19 vaccine to help with pediatric vaccination as well as possible booster shots – if they are needed.

A Biden administration official with knowledge of the contract said that as part of the agreement, Pfizer will provide the United States with 65 million doses intended for children under 12, including doses available immediately after the vaccine is authorized for that age group.

The U.S. government also has the option to buy an updated version of the vaccine targeting new variants of the virus.

The deal comes as the Delta variant of the coronavirus sweeps across the country and drives up infections, contributing to the debate over whether or not Americans will need a booster dose this fall.

It also follows the government’s move in June to buy 200 million more doses of Moderna Inc’s COVID-19 vaccine.

The purchase brings the total number of doses of the Pfizer/BioNTech vaccine to be supplied to the United States to 500 million, of which roughly 208 million doses have already been delivered, as of Thursday’s data from the government.

“These additional doses will help the U.S. government ensure broad vaccine access into next year,” Pfizer Chief Executive Officer Albert Bourla said in a statement.

Pfizer last year signed a deal with the U.S. government for 100 million doses of the vaccine for nearly $2 billion, with an option to buy 500 million more doses.

A majority of the new doses will be supplied by the end of the year, and the remaining 90 million will be delivered by April 30, the companies said.

Pfizer and BioNTech have designed a new version of their vaccine targeting the Delta variant, which they plan to test in the coming weeks, but have said the current vaccine could also provide protection against the variant.

Pfizer earlier this month said the companies plan to seek authorization from U.S. and European regulators for a booster dose of their COVID-19 vaccine.

The U.S. government has said Americans who have been fully vaccinated do not need a booster COVID-19 shot at this time.

Advisers to the U.S. Centers for Disease Control and Prevention on Thursday considered evidence suggesting that a booster dose of COVID-19 vaccines could increase protection among people with compromised immune systems.

CDC scientists told advisers that boosters for the immunocompromised would need to wait for regulatory action from the U.S. Food and Drug Administration – either full approval of vaccines or amendments to their current emergency use authorizations – before the CDC could make a recommendation.

(Reporting by Manas Mishra in Bengaluru and Michael Erman in New Jersey; Editing by Sriraj Kalluvila, Maju Samuel and Dan Grebler)