President Donald Trump recently announced a new executive order that charges the heads of American departments and agencies to encourage US companies to buy US products.
The “Executive Order on Strengthening Buy-American Preferences for Infrastructure Projects” was issued on January 31st.
US department heads are now ordered to produce a report that details how “to maximize the use of iron and aluminum as well as steel, cement, and other manufactured products produced in the United States in contracts, sub-contracts, purchase orders, or sub-awards that are chargeable against Federal financial assistance awards for infrastructure projects.”
Since his election, President Donald Trump’s America First policy has promised to revitalize the economy and reinvigorate the nation’s manufacturing and industry.
The new order applies to companies that are receiving federal grants and contracts.
“The president deserves credit for identifying serious, government-wide gaps in Buy America coverage. While this executive order encourages agencies to do a better job, the president should do more. The president should take the next step and use his executive powers to actually require agencies to apply Buy America rules where they do not currently apply. And, he should work with lawmakers to strengthen Buy America as Congress develops an infrastructure package,” said Scott Paul the President of the Alliance for American Manufacturing.
It is likely that the move goes hand in hand with recent tariffs on Canadian steel and aluminum since the executive order encourages
Since tariffs were imposed on Canadian goods, the Canadian government has issued retaliatory tariffs on the US in response.
Currently a new bill has been introduced into the Senate and the House to cancel the tariffs imposed on steel and aluminum.
That bill is still making its way through the house.