This is the subject of my latest Bloomberg column, here is an excerpt:
Then there is the money. European and South Korean infrastructure companies, for example, tend to cost less than US companies. The Buy American Act often prevents them from bidding on US contracts. And when the federal government spends more money on US supplier contracts, it has less money to invest elsewhere.
Also:
Under the current law, which has been supported by both administrations Donald Trump and Joe Biden, the domestic content requirement is expected to increase to 75% by 2029. That could raise the cost of Buy American supplies even more, especially in a world where many countries are entering the market as low-cost producers. Furthermore, the higher that percentage, the more likely the US is to protect sectors that spend their money on capital goods, rather than using US workers. Job creation or job protection will likely decrease accordingly. In the future, implementation of the program could cost between $154,000 and $237,000 per employee.
The column draws from this NBER working paper as
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