President Joe Biden’s Buy American program is a mistake.  It is an assault on our allies.  It is anti-competitive.

iPhones are made in China because the cost of making them in America would make them too expensive for most people.  Actually the newest iPhones are too expensive for most people now.

More than 40 million American jobs depend on trade, and trade is critical to the success of many sectors of the U.S. economy.

98% of the roughly 300,000 U.S. companies that export are small and medium-sized businesses, and they account for one-third of U.S. merchandise exports, according to the U.S. Department of Commerce. 

American imports totaled $2.614 trillion in goods in 2019.

Here are the top ten items imported items into the United States.  My source in the U.S. Chamber of Commerce.

1. Machinery (including computers and hardware) – $386.4 billion

2. Electrical machinery – $367.1 billion

3. Vehicles and automobiles – $306.7 billion

4. Minerals, fuels, and oil – $241.4 billion

5. Pharmaceuticals – $116.3 billion

6. Medical equipment and supplies – $93.4 billion

7. Furniture, Lighting, and Signs – $72.1 billion

8. Plastics – $61.9 billion

9. Gems and precious metals – $60.8 billion

10. Organic chemicals – $54.6 billion

The total dollar value of every U.S. import translates to about $9,457 for every resident in the country.

The United States’ greatest trading partners are also those who provide the most of the country’s imports. Based solely on the strength of goods (not services), the most powerful nation in the world receives the most imports from China (18.2%), Mexico (14.4%), and Canada (12.7%). Rounding out the list of the top 10 United States imports are Japan, Germany, South Korea, Vietnam, the United Kingdom, Ireland, and France, accounting for approximately 23.9% of the rest of U.S.-bound imports.

Canada, Mexico, the European Union, Chile, and Brazil are also the largest importers of American-made food products, including horticultural goods, sugar, and tropical products unique the North American climate. Nearly $14 billion in food goods go to these countries each year.

The raw material to make those imported items costs the same whether they are purchased in the United State or elsewhere. It is the cost of labor that makes products manufactured in the United States more expensive.  There is no way Americans will work for the low wages that are common so many countries around the world.  Things are going to get even tougher as President Biden pushes for a $15 per hour minimum wage.

Vast productivity gains relating to increased use of automation and information technologies have helped U.S. manufacturers retain and in many areas enhance their global competitiveness in recent years, even as the number of Americans employed in manufacturing has declined since its peak in 1979.

The U.S. Department of Commerce estimates that exports of manufactured goods directly support more than 6 million U.S. manufacturing jobs—roughly half of all manufacturing employment.

Perhaps Biden’s efforts in his Buy American program is not a serious effort but is just saying the right thing politically.  After all we should do everything we can to encourage companies to make their products in the United States.

In the end, we cannot turn our back on international trade. It is an inevitable part of the world in the 21st century. We simply need our elected leaders to prioritize initiatives to open foreign markets so that U.S. companies can sell more of our goods and services overseas. Trade can provide a path to jobs and prosperity if we have the courage to seize it.

Trade can provide a path to jobs and prosperity if we have the courage to seize it.