Tuesday, November 14, 2023

'Buy American' clash of reality

President Joe Biden and a bipartisan bloc of lawmakers want more U.S. military hardware to be made in America. 

But the defense industry is saying it's the wrong time - with supply chain issues, towering global demands for weapons (in support of Ukraine, Taiwan and Israel) needs to work with allies to get it done and that this America First movement should wait. 

The “Buy American” campaign, touted to fuel domestic manufacturing and high-paying jobs at home, is gaining steam in Congress. 

Both versions of the FY 2024 National Defense Authorization Act contain provisions that require a certain percentage of American weapons be made domestically. 

Yet the politics is crashing into the reality facing the defense industry.

The race to build weapons has blown a hole in the system, forcing DoD to seek more help from outside the country to fill orders for Taipei, Kyiv and Jerusalem. 

“We don’t believe it’s the right time,” said Keith Webster, the president of the U.S. Chamber of Commerce’s Defense and Aerospace Council, when asked about the Buy American provisions. 

Biden, days after inauguration in 2021, signed an executive order that said 60% of products bought with taxpayer dollars must be made in America, ramping up to a final target of 75% in 2029.

Despite the current bill’s sizable exception for certain allies, it managed to retain the endorsement of the AFL-CIOInternational Association of Machinists and Aerospace Workers; and the Union Veterans Council

The Aerospace Industries Association, which represents 340 U.S. firms, released a carefully worded statement when asked for its reaction to the Buy American push. Yet the message was clear: Go easy on us. (Politico 11/14/23) Defense manufacturers fear fallout from 'Buy American' politics - POLITICO

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