Joe Biden will increase threshold for products considered ‘Made in America’ from 55% to 60%

Biden’s ‘Buy American’: President will increase threshold for products considered ‘Made in America’ to 60% as he heads to Pennsylvania truck factory to demand taxpayer dollars be spent on domestic goods

  • Biden to reveal a new rule on Wednesday raising the threshold of products ‘Made in America’ from 55% to 60% of it’s components being produced domestically 
  • By the end of the decade, that threshold will raise to 75% 
  • Rule is aimed at the federal government spending more taxpayer dollars on bolstering American manufacturing 
  • President will announce the initiative at a Mack Trucks manufacturing facility in Lehigh Valley, Pennsylvania – in the heart of the key swing state   
  • In April, Biden opened a Made in America Office, which incentivizes agencies to use taxpayer money to support this new ‘Buy American’ initiatives

Joe Biden will roll out a new rule Wednesday increasing the federal threshold for what makes something ‘Made in America’ and ensuring more taxpayer money is spent on American made products and services.

The president will speak at the Mack Truck Lehigh Valley Operations in Macungie, Pennsylvania on Wednesday to reiterate the importance of ‘American manufacturing, buying products in America and supporting good-paying jobs for American workers.’

In April, Biden opened a Made in America Office, which proposes ideas on helping agencies use taxpayer dollars to support this new ‘Buy American’ initiative.

That office’s Tuesday rule proposal would increase the threshold of what qualifies as a ‘Made in America’ product when taxpayer dollars are being spent. Currently, products qualify when 55 per cent of their parts were manufactured in the U.S. The new rule immediately raises that threshold to 60 per cent with a phased increase to 75 per cent by the end of the decade.

Joe Biden will announce a new rule on Wednesday that will raise the threshold of products considered ‘Made in America’ from 55% to 60% of it’s components being produced domestically

A fact sheet on the rules says ‘[i]f adopted, this change would create more opportunities for small- and medium-sized manufacturers and their employees, including small and disadvantaged enterprises, from all parts of the country.’

‘To support this work,’ it adds, ‘the Small Business Administration has created a new manufacturing office in its federal contracting division.’

There are concerns that these measures could end up increasing inflation in the future if some companies need to boost their prices to meet the new ‘Made in America’ thresholds.

An administration official told reporters on background call they have not done a macroeconomic analysis of the effects of this rule, but expect the potential negative economic effects are ‘unlikely to be very large.’

‘At his first Cabinet meeting, the president also directed every member of the cabinet to take a hard look at their agency’s spending and make sure it follows the administration-wide Buy American commitment,’ one of the two officials on the call said.

This rule would only look to make sure that federal spending (read: things bought with taxpayer dollars) would meet that newly raised threshold, and would not affect the private sector.

Two administration officials on the call also claim that the rule is vital to increasing transparency and accountability to ‘ensuring the future of America is made in all of America by all of America’s workers.’

‘We know that the records show that right now, for instance, more than 96 per cent of purchases recorded so far this year are recorded as being manufactured in America,’ a Biden official said. ‘What we know is that contractors certify that they have hit the current threshold.’

‘So part of what we’re doing is trying to go that extra mile to find out how much American content is in the particular critical goods that we’re buying. And to use that to determine if we’re getting enough data to expand that requirement,’ the added.

The rule is the latest proposal to try and boost American manufacturing.

To deliver the news, Biden will speak at a truck manufacturing facility in Lehigh Valley, Pennsylvania, a key swing region in the swing state.

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