Concerns Arise around Biden’s Buy American Act

  • Reporter. 유지영
  • 입력 2023.03.30 10:25
Biden’s Buy American Act (eenews.net)
Biden’s Buy American Act (eenews.net)

Concerns regarding the infrastructure industry of the United States (U.S.) grow as President Joe Biden’s Buy American Act falls into crisis. The Buy American Act is an initiative that requires a certain percentage of raw construction materials to be American-made, which was strengthened in 2021 due to the economic slumps led by the pandemic. The Biden administration promised to raise the threshold again to 75%, from its current level of 55% to 60%, by 2029. However, concerns were raised regarding the practicability of the act and how it could backfire on the economic situation of the U.S. infrastructure industry. The main problem is that the country’s current infrastructure industry depends heavily on overseas raw materials. Such dependence on foreign materials can make it difficult for companies to meet the threshold of the Buy American Act. In fact, according to research by the Associated General Contractors of America (AGC) in August 2022, 93% of the infrastructure companies stated that they had difficulties in the supply and demand of raw materials. Rob Scott, a research associate at the Economic Policy Institute, added, “boosting government purchases of domestic items is unlikely to reshape the $25 trillion U.S. economy.” Crises are expected to deepen if the act is maintained. Therefore, whether the Biden administration will continue with the initiative is at the center of attention.

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