Biden administration encourage US iron and steel

By Catrin Jones27 April 2022

In a memorandum published by the White House, projects that are funded by the US$1.2 trillion infrastructure package are only permitted to use iron and steel produced in the US. 

US infrastructure projects required to use steel produced within the country (Photo: Adobe Stock)

Under the Infrastructure Investment and Jobs Act, the requirement dictates that all manufacturing processes for iron and steel must be completed in the US starting from 14 May.

The clampdown on imported iron and steel comes after the United Nations COMTRADE database reported that imports into the US reached about US$38.9 billion last year.

In making this a requirement, Biden hopes to create more jobs and become independent of international supply chains. However, construction association executives are critical of whether the rules will further fuel construction costs and high inflation.

Stephen E. Sandherr, CEO of the Associated General Contractors of America (AGC), said in a statement, “It makes no sense to place unrealistic limitations on firms’ ability to source key materials at a time when prices for those products are skyrocketing and supplies are limited. Supply chain shortages are already prompting firms to avoid bidding on new projects.”

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