Executive Order: Biden will sign with the aim of strengthening American manufacturing

Similar executive orders signed by former President Donald Trump had little effect as his administration waited to formalize the changes from its second to last day in office. opposite of this, According to an administration official, Biden will set a time limit of 180 days to make fundamental changes in the process.

“He believes that we can rebuild American manufacturing and our industrial strength. A large part of it focuses on the idea that when we use taxpayer money to rebuild America,” says the official We buy American and we support American jobs. ”

The order follows others Biden signed last week, providing additional relief to needy Americans, as well as beginning the process of raising the minimum wage to $ 15 per hour for federal contractors and workers.

Gaps in federal procurement

Currently, a patchwork of federal regulations requires that a portion of government spending on such things as infrastructure, vehicles, and other equipment be limited to goods made in the United States. But there are flaws depending on the material, the amount of purchase, and what qualifies as American.

Biden’s executive order will change how household materials are defined and measured for qualified products as well as increase the required range. It will also create a senior position in the Office of Management and Budget to oversee the process by which contractors can apply for an exemption from purchased US regulations, with the goal of reducing the exempted number.

The administration will also create a public website that will post all waiver requests and direct agencies to continually engage with smaller US manufacturers who are often left out of the process.

What happened to boost Trump’s promise

The manufacturing sector did not get a boost Trump repeatedly promised. The number of manufacturing jobs increased during the first two years of his administration – albeit at roughly the same pace as he did under President Barack Obama – but then slowed in 2019 after an increase from Republican-backed tax cuts and Trump China’s tariffs created uncertainty for businesses.

The pace of the epidemic became difficult as the rest of the economy slowed. According to the Bureau of Labor Statistics, the sector is still below 543,000 jobs since February 2020.

“Trump talked about buying American and hiring American, but his executive orders didn’t amount to much,” said Scott Paul, president of the Alliance for American Manufacturing.

He said, “Joe is really a ‘Made in America’ president for Biden.”

Paul said he looks forward to seeing Biden draw loopholes in the current federal procurement process as well as following up on his campaign promise to purchase $ 400 billion in US manufactured goods and materials for infrastructure projects.
Biden’s Buy American policy may worry some foreign trade partners. Canadian Foreign Affairs Minister Mark Guarnio said Interview with CBS News On Sunday that “it could endanger the very strong integrated supply chains that exist between our two countries.”


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