President
Elect Trump’s sentiment favoring the preservation and repatriation of U. S.
manufacturing jobs at all costs, coupled with growing protectionist sentiment
among Democratic leaders in Congress, could result in U. S. motorists and
taxpayers getting far less infrastructure actually built under any 10 year
federal infrastructure legislation likely to be introduced during a Trump
administration’s first term. Ohio Congressman and minority leader candidate Tim
Ryan is already a chief cheerleader for the expected “Buy American” riders
Congress is likely to add to any Trump administration infrastructure proposals.
“Let’s have Buy American provisions in there, so it’s American-made steel and
American-made concrete,” Ryan has announced.
Former
George W. Bush administration trade representative Susan Schwab says the
addition of buy American riders to an infrastructure bill will end up with the
federal government spending an extra $900,000.00 for every U. S. steel industry
job saved, instead of leaving motor fuel tax revenues in the Highway Trust Fund
to build more roads and bridges using American construction workers. Buy
American steel provisions hurt U. S. trade relations with Canada under the
Obama administration, and the addition of concrete to such legislation would
further increase material prices by limiting imports of Portland cement from
Mexican and South American suppliers who are major exporters to the U. S.
construction market.
Toronto
based IPEX Management Inc., a steel product maker with plants in both Canada
and the U. S., cites difficulties arising at U. S. military and other
construction sites under the Obama buy American restrictions. IPEX’s Veso Sobot
says multiple projects have suffered schedule delays and increased costs as a
result, hurting workers on both sides of the U. S./Canadian border. “Canada is
joined at the hip with America. We get 95% of our raw materials from the U. S.
We have a lot of American suppliers. We have a lot of American customers. We
share so many things,” Sobot said.
It
remains to be seen what specific materials may be included in buy American
riders to a Trump administration infrastructure bill, and what the impact on
material costs for private construction projects in this country might be.
