Biden seeks to strengthen the motivation to “buy American goods” before visiting Pennsylvania
U.S. Trade Dynamics
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Joe Biden plans to substantially increase the domestic content requirements for products sold to the federal government in order to strengthen his “buy American” before visiting the blue-collar communities in Pennsylvania.
The proposal will help the White House step up its efforts to resolve Supply chain vulnerabilities This occurred during the coronavirus pandemic and caused a problematic bottleneck.
But this may upset the U.S. government’s international suppliers and may exacerbate tensions with allies such as Canada and Europe, which have long resisted Washington’s efforts to tighten procurement rules.
The President’s plan must go through a public comment period before it can be implemented, which will raise the threshold for products to meet domestic content requirements under U.S. law.
under Existing rules, If 55% of the value of the product is manufactured in the United States, the product can pass the audit. But the White House hopes to increase this ratio to 60% and gradually increase to 75% in the next eight years.
A White House fact sheet stated: “This proposal will fill the loopholes in current regulatory issues, while also giving companies time to adjust their supply chains to increase the use of American-made parts.”
Biden is expected to publicize the proposal during his trip to Dismount Kunji Township in Lehigh Valley, Pennsylvania on Wednesday afternoon. The White House stated that the President will “Pay attention to The importance of making in the U.S., buying products made in the U.S., and providing high-paying jobs for American workers.”
The proposal also includes a measure to provide domestic producers of key commodities with a “stable source of demand” through new price concessions, which is essentially a special incentive to continue to supply the government.
Made by Biden The cornerstone of domestic procurement During his 2020 presidential campaign, especially in the industrial Midwest and the Rust Belt, he tried to win back voters who flocked to Donald Trump because of the protectionist economic message of the former president.
In January of this year, shortly after Biden took office Sign executive orders To promote domestic procurement, the new rules will be based on this.A government official stated that the proposal will not affect the country’s “trade obligations,” but officials and executives from U.S. trading partners have Raise concerns The “Buy American” clause is discriminatory and aims to cut off international competition.
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