"Buy American": Joe Biden wants the federal state to buy more American products

Joe Biden will sign an executive order on Monday asking federal agencies to buy more American products in order to boost national production and preserve jobs, thus taking up a theme dear to his predecessor Donald Trump, announced the economic adviser of the White House.

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The decree aims to "

increase investment in manufacturing industries and in workers in order to build back better,

" a Biden administration official told reporters, adding that the aim is also to direct federal agencies to remove legal loopholes exploited by companies that often manufacture in the United States only a small part of the products offered to the government.

This decision echoes those of his predecessors and more particularly Donald Trump, who had encouraged, by decree, the federal state to buy more American products and made tariffs a weapon against imports, with uneven results.

Instead of a trade war, Joe Biden favors a toughening of the “Buy American” rules and wants to use the federal government's purchasing strike force.

“

The dollars that the federal government spends ... are a powerful tool in supporting American workers and manufacturers.

Public contracts alone represent nearly $ 600 billion in federal spending,

”detailed an administration official.

Towards a hardening of the "Buy American"

The Buy American Act of 1933, still in force, obliges federal agencies to source goods produced on American soil as a matter of priority, "

but these preferences have not always been implemented in a consistent or effective manner,

" according to the author. 'administration.

The Biden approach must "

fundamentally change the structure of the

'

Buy American' process,

" in order to change the very definition of a product considered to be made in the United States, and to tighten the possibilities of exemptions. .

The administration also wants new companies, including small ones, to have access to tenders.

During the election campaign, Joe Biden promised to toughen up the "Buy American" with a $ 400 billion plan for projects using products made in the United States, including steel or personal protective equipment. health services fighting against the Covid-19 pandemic.

After his victory, he claimed that the federal government was going to buy American cars and inventory.

However, companies have already warned that overly restrictive rules could cause costs to soar, making it difficult to buy parts made outside the United States.

"Solidifying supply chains"

The decree must also "

be seen as only part of a global commitment of this administration (...) to solidify supply chains

," said one of Joe Biden's lieutenants.

Washington highlights the shortages caused by Covid-19, which have shown the weaknesses of the system, and explains wanting to avoid being "

put in a position where we depend on countries that do not share our interests to deliver essential materials

" .

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The new American president "

remains determined to work with partners and allies

(of the United States)

to modernize the rules of international trade (...) so that all countries can use the money paid by taxpayers to encourage investment. in their own countries

”.