Biden rule change would require more US-made parts in products sold to government

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President Joe Biden visits a Mack Trucks facility in Pennsylvania. Biden said on Wednesday he wanted to see chipmakers produce microprocessors in U.S. factories so that shortages do not affect the auto industry and other U.S. manufacturers.

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President Joe Biden on Wednesday proposed a new rule that would increase the requirements for U.S.-made parts in products sold to the government. The the required percentage would go from 55% to 60% immediately and gradually increase to 75%.

Speaking in a Mack Trucks manufacturing plant in Pennsylvania, Biden pointed out that the federal government owns about 600,000 cars and that too few vehicle parts are made in the United States. The same is true for other goods purchased by the government, he said, even though the Buy American Act requires that “almost all” of the parts for items sold to the US government be made in the country.

“Almost everything is going to mean virtually everything,” Biden said.

The proposed rule would also create a stricter enforcement, requiring manufacturers to specify which parts were made in the United States, instead of simply declaring that the product meets the threshold. The rules aim to create jobs by creating stronger incentives to manufacture products in the country.

The proposed changes came on the same day Biden struck a deal with a bipartisan group of senators to push forward a big infrastructure bill it would spend $ 1 trillion on roads and bridges; mass transit projects, including rail and airports; charging infrastructure for electric vehicles; expansion of broadband services; and improvement of water, sewer and electricity networks. The compromise bill cut by $ 200 billion of Biden’s original proposal and would have included less funding for electric vehicle charging.

Biden noted that auto manufacturing in the United States has been slowed down by shortage of microprocessors used to power computers in cars. He said he was pushing for chipmakers in South Korea and Taiwan to open factories in the United States to create domestic jobs and avoid future chip supply chain disruptions for other American industries.


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