Biden intends to sign a decree to prioritize US businesses and domestic products in contracts with the federal government, which has been supported by Trump.

Senior White House officials on Jan. 25 said President Joe Biden will sign the decree to boost domestic production and facilitate the use of domestic workers by increasing investments in manufacturing industries in the country.

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President Joe Biden signed the decree on the first day of his inauguration on January 20 at the White House Photo: AFP

The new executive ordinance also restricts federal agencies from stamping products they buy as "made in the US", eliminating legal loopholes that many companies take advantage of as products supplied to the US government only.

Biden's decision reflects the approach of his predecessors, especially former President Donald Trump.

However, Biden favors tightening the "buy made in the US" regulations and wants to use the federal government's buying rights instead of causing a trade war.

"The money the federal government spends is a powerful tool to support US manufacturing businesses and workers. Only contracts to supply products to the federal government account for nearly $ 600 billion in the budget."

The Buying US Goods Act of 1933 was still in effect, requiring federal agencies to give priority to buying goods made in the United States, but "these priorities are not always implemented consistently or efficiently"

During the campaign, Biden pledged to strengthen the "Buy American goods" process with a plan to spend $ 400 billion on projects to buy US-made goods, including steel or protective equipment for employees.

After being elected, Biden announced that the federal government would buy American cars and inventories.