U.S. President is signing his “Buy American, Hire American” Executive Order today in Wisconsin. Here is a primer on what Donald Trump means by “Buy American.” (Monday we wrote an explainer on the “Hire American” side of it.)
Quick Take: The Executive Order will call on the government to focus on buying American-made goods, and reduce the number of waivers the government uses to legitimize purchases from the other countries. The Commerce Department and the Trade Representative will be called on to evaluate whether international trade agreements (IDA) are reciprocal and fair with this order.
Fewer Waivers: “From day one they’re going to be fewer waivers granted even as we are evaluating the waiver process,” said two senior administration officials who briefed reporters on Monday.
Doesn’t Ban Foreign Purchases: It just makes buying American goods the preference, except for when the cost of domestic goods is prohibitive or not available given the amount desired. Plus, if trade agreements with other countries cover foreign procurements, government agencies can get waivers to make those purchases lawful.
The Legal Grounds: That’s all in accordance with The Buy American Act of 1933. It is a depression-era law that was intended to reduce foreign competition & to create jobs for Americans — falling right in line with several of Donald Trump’s campaign promises.