Biden's 'Buy American'... U.S.-Made Product Recognition Rate Increases from 55% to 60% Starting October

[Asia Economy New York=Special Correspondent Joselgina] The Biden administration in the United States will raise the minimum American-made component ratio, the standard for recognizing American products eligible for the $600 billion annual federal procurement market, from 55% to 60% starting at the end of October.

On the 6th (local time), the U.S. government announced this by posting the revised Federal Acquisition Regulation on the March 7th Federal Register.

The domestic production component ratio standard to be recognized as an American-made product will be raised to 60% from October 25. It will then be gradually strengthened to 65% in 2024 and 75% in 2029.

This is part of President Biden's "Buy American" policy aimed at strengthening domestic manufacturing and key supply chains. He previously mentioned the 55% component ratio for recognizing American products, stating, "It's just a little over half, not the whole."

By gradually increasing the domestic production component ratio, this measure aims to revitalize U.S. manufacturing and secure a stable supply chain. It is also interpreted as an effort to encourage global companies to build production bases within the United States.

Along with this, the Biden administration has decided to apply a new price preference policy to key American products such as semiconductors, pharmaceuticals, and batteries. This means that for products necessary for national security, health, and economic recovery, they will purchase American-made products even at a slightly higher price.

This content was produced with the assistance of AI translation services.