After Donald Trump, Joe Biden wants to strengthen the made in America

Joe Biden continues Donald Trump’s fight on the made in America front … The President of the United States is going to sign a decree giving priority to American companies and products in contracts with the federal state. A text which aims to revive national production and preserve industrial jobs by increasing “investments in manufacturing industries and in workers in order to rebuild better”. Less than a week after his inauguration, Joe Biden continues to deploy his priorities through presidential decisions even though his government team is still not in place.

While Lloyd Austin, the Minister of Defense, was confirmed by the Senate on Friday, key ministries, such as Foreign Affairs, are still awaiting their officials. The vote on the confirmation of Janet Yellen, the future Minister of the Economy and Finance who must steer economic projects, including the $ 1.9 trillion rescue plan to get the country out of the crisis, is scheduled for Monday. The new decree should make it possible to reduce the possibilities of circumventing the rules requiring the federal administration to first buy products made in the United States. In particular, Mr. Biden wants to limit the way in which federal agencies stamp products they wish to purchase “Made in America” ​​in order to eliminate legal loopholes exploited by companies that manufacture only a small part of them in the United States. .

>> To read also – United States: “Joe Biden will drive structural changes”

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 hardening of the rules of the “Buy American” and wants to use the strike force of purchase of the federal government. “The dollars that the federal government spends (…) are a powerful tool to support American workers and manufacturers. Public procurement alone represents nearly $ 600 billion in federal spending,” said an official of the ‘administration.

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 process 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 for exemptions. The administration also wants new businesses, including small ones, to have access to tenders.

>> Subscribe to our Companies and Markets newsletter

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 the federal government was going to buy American cars and inventory. However, companies have already warned that overly restrictive rules could cause costs to skyrocket, making it harder to buy parts made outside the United States.

The decree must also “be seen as only part of an overall commitment by this administration (…) to solidify supply chains,” said one of Mr. 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” .