• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
FinanceDonald Trump

Trump’s ‘Buy American’ Policy Could Kill His Plan to Rebuild America

By
Annalyn Kurtz
Annalyn Kurtz
Down Arrow Button Icon
By
Annalyn Kurtz
Annalyn Kurtz
Down Arrow Button Icon
April 18, 2017, 1:01 PM ET

President Trump’s “Buy American” policies could make it a lot harder for him to follow through on the ambitious $1 trillion infrastructure spending plan he touted on the campaign trail to win over blue collar workers.

Industry groups say the president’s plan, which he’s set to expand Tuesday, would raise prices on construction materials, making it more expensive to build oil pipelines, bridges, highways, homes, and schools.

Contractors are already grappling with higher prices on key materials for construction projects like diesel fuel, steel, copper, wallboard, and lumber, said Ken Simonson, chief economist for the Association of General Contractors, a lobbying group with about 26,000 members which also includes suppliers. And now he expects those prices to go up.

“Trade restrictions such as ‘Buy American’ limit the ability of producers—whether it’s contractors or manufacturers—to get the best prices for the things they need, and ultimately the public is either going to pay more or receive less,” Simonson said. “It may mean some school projects or highway projects get deferred or cancelled, because the dollars that get allocated won’t stretch as far.”

Over the past 12 months, prices have increased 19% on steel mill products, 17% on copper and brass mill shapes, 7.6% on gypsum products like wallboard and plaster, and 7.3% on lumber and plywood, according to data released last week by the Bureau of Labor Statistics.

Contractors are already having difficulty passing on those higher prices to their customers, and as a result, their profit margins are being squeezed, Simonson said.

President Trump is scheduled to sign his “Buy American, Hire American” executive order during a visit to Snap-On Tools, a tool manufacturer in Kenosha, Wisc. on Tuesday afternoon. Similar directives have already been in place for decades, but the White House makes the case that they’ve been “enormously diluted over time.”

Trump’s executive order is not expected to fundamentally change those policies overnight. Rather, the “Buy American” portion will call for federal agencies to initiate a 220-day review of how they can strengthen protections on American-made goods. The order also will demand that publicly financed projects use American-made steel. Raw steel imported from foreign countries but finished in the U.S. will be exempted from the rule.

Already, industry groups like the American Petroleum Institute and the Interstate Natural Gas Association of America have opposed the president’s earlier proposals to require new pipelines to use American-made steel, citing higher costs. The United States Chamber of Commerce has also objected to his Buy American stance, claiming that whenever the government has enacted domestic sourcing rules in the past, “the resulting experience has been higher overall construction costs, increased compliance burdens, reduced competition, and disruption of supply chains without significant American job creation.”

That powerful lobby group also claims that earlier Buy American rules tied to President Obama’s 2009 stimulus package, delayed “shovel-ready” projects as municipalities conferred with lawyers and manufacturers refrained from bidding on projects because they found it difficult to avoid sourcing their materials from abroad.

Trump’s Buy American policies could have a similar affect on his $1 trillion infrastructure plans, which he touted loudly on the campaign trail but has yet to detail specifics during his presidency. Last fall, the president’s economic advisors, Wilbur Ross and Peter Navarro, had described the plan as deficit-neutral with substantial tax credits encouraging investment from the private sector.

Rising costs mean the project could struggle to get buy-in from private sector players and have less impact overall.

“If the president and Congress are serious about rebuilding the nation’s aging infrastructure, it is vital to avoid artificially pushing up the cost of materials that go into these projects,” Stephen Sandherr, chief executive of the Association of General Contractors, said in a press release.

About the Author
By Annalyn Kurtz
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Beyond the diploma: Skills that actually get graduates hired
Future of WorkWorkplace Innovation Summit
Beyond the diploma: Skills that actually get graduates hired
By Ashley LutzMay 22, 2026
7 hours ago
Sam Altman standing in a lift.
AIOpenAI
The big questions looming over OpenAI’s trillion-dollar IPO
By Beatrice NolanMay 22, 2026
8 hours ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
8 hours ago
Musk may already be a trillionaire while these SpaceX employees and investors will hit multibillion-dollar jackpots after blockbuster IPO
Startups & VentureSpaceX
Musk may already be a trillionaire while these SpaceX employees and investors will hit multibillion-dollar jackpots after blockbuster IPO
By Jason MaMay 22, 2026
9 hours ago
ta
EconomySocial Media
They created AI nudes that got millions of views online. Now they’re being charged with crimes
By Jake Offenhartz and The Associated PressMay 22, 2026
10 hours ago
Best private student loans in May 2026
Personal FinanceLoans
Best private student loans in May 2026
By Joseph HostetlerMay 22, 2026
10 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
2 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
AI
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
By Emma BurleighMay 21, 2026
1 day ago
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
Conferences
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.