Dear President Trump:
We are writing to express our strong support for your July 15, 2019 executive order to increase minimum domestic content in federal purchasing to 75 percent under the Buy American Act of 1933. This order will boost domestic industrial capacity, enhance competitiveness, increase employment, and further our national security.
In fiscal year 2019, the federal government executed more than 2.7 million contracts with the private sector that were worth more than $500 billion. Contracts for the Department of Defense alone exceeded $300 billion.
Far too many companies like mine do not have an opportunity to access these federal contracts. And much of this business is farmed out by primary contractors to overseas competitors who benefit from their countries’ subsidies and currency misalignment. Your executive order takes into account the market realities that allow overseas competitors to bid at artificially low rates.
Your proposal to increase the allowed difference in the cost between domestic and imported goods—from 6-12 percent up to a higher 20-30 percent—is extremely welcome and helpful.
For years, the prevailing wisdom in Washington has been to find the lowest-cost contract, no matter the consequences for domestic industry. This has resulted in the offshoring of much of America’s defense industrial base. It has also reduced US military readiness to critical levels.
My company is part of the domestic industrial base that has long formed the backbone of the nation’s “arsenal of democracy.” We strongly urge your administration to move forward with these proposed Buy America rules to ensure 75 percent domestic content, and to close unnecessary loopholes in the regulations, such as for "micro-purchases" and information technology.
cc: The Honorable Wilbur Ross, Secretary of Commerce
The Honorable Mick Mulvaney, Director of Office of Management and Budget
Dr. Peter Navarro, Assistant to the President for Trade and Manufacturing Policy
Tomas J. Philipson, Acting Chairman of the Council of Economic Advisers
Larry Kudlow, Assistant to the President for Economic Policy