WASHINGTON—President Biden has proposed a rule that would change the way the federal government assesses products made in America.
Right now, the federal government has to spend tax dollars on products made in the U.S., but purchases qualify for that label with 55 percent of their materials coming from the United States. Biden is proposing raising the threshold to 75 percent by the end of the decade.
During a visit to the Mack Trucks assembly plant in Macungie, PA, on July 28, Biden argued that changing the rule would provide more effective support for domestic industries.
“In recent years, ‘Buy American’ has become a hollow promise. My administration is going to make ‘Buy American’ a reality,” he said.
The rule would take several months to be finalized, and it’s the latest effort by the administration to boost domestic manufacturing.
In his first days in office, Biden signed an executive order that administration officials said would close loopholes in “Buy American” policies for the federal government.