© Reuters.File Picture: US President Joe Biden addressed members of the “Intelligence Community Staff and Leadership” during a visit to the Office of the Director of National Intelligence near McLean, Virginia, on the outskirts of Washington, U.S., July 27, 20
Washington (Reuters)-On Wednesday, President Joe Biden will visit the Mike Trucks plant in Pennsylvania to emphasize the importance of American manufacturing and announce new rules to gradually increase the content of American goods purchased with taxpayer money .
Biden will meet with local members of the American Union of Auto Workers (UAW), which represents 85% of the 2,500 workers at the McTrucks Lehigh Valley plant, and will hear a briefing about the company’s new electric garbage truck being piloted in New York. The White House said that the city and North Carolina.
The Democratic President signed an executive order in the first week of taking office in January aimed at harnessing huge purchasing power https://www.reuters.com/article/us-usa-biden/biden-signs-buy-american-order -Commit to update the US manufacturing idUSKBN29U0Z3 Federal Government-the world’s largest single consumer goods buyer-to support US manufacturing.
Officials said that the new rules announced on Wednesday were announced after dozens of meetings with industry and institutions discussed in the past 180 days. They will expand the existing “Buy American” clause, which applies to approximately one-third of the $600 billion in goods and services purchased by the federal government each year.
If approved, they will immediately increase the minimum content of U.S. manufactured products from 55% to 60%, and then to 65% in 2024 and 75% in 2029.
A senior administrative official said: “This proposal will strengthen procurement as a tool to strategically shape the market and accelerate innovation.” “The future of our economy depends on continuing to promote smart investments that provide our workers and companies with what they need to compete. Tool of.”
Officials said that the parties concerned will have 60 days to comment on these changes before the rules are finalized.
The rule also proposes to increase price concessions for certain key products and components, and officials say this move will help promote domestic production of key goods and materials.
It will increase transparency by requiring manufacturers to report the total domestic content of their products, rather than simply proving that they meet the content threshold.
Officials said that the new regulations do not apply to the service industry, which accounts for more than half of the US$600 billion in government procurement by the Department of Defense and other agencies each year.
It is not expected to have a direct impact on supply chain bottlenecks, such as a global semiconductor shortage that has led to a slowdown in the automobile manufacturing industry and pushed up inflation.
Officials said that the Biden administration will continue to adopt other measures to resolve these deadlocks.
Given the challenge of sourcing products at competitive prices, the private sector’s efforts to promote the purchase of American-made goods have been in trouble in recent years.
For example, Wal-Mart (NYSE:) promised to purchase US$250 billion worth of U.S. goods by 2023 in 2013, but only two years later, after a rigorous investigation by the FBI, the products on its website were deleted “Made in America” logo. Trade Commission.
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