Trump’s “Buy American” policy in procurement: A critical Study

On 3 April 2025, the White House published a critical report on trade policy, including “Buy American” policies in procurement. The report, largely overlooked in the popular press, offers important insights into how the Trump administration may deal with the WTO Government Procurement Agreement (GPA), the EU Foreign Subsidies Regulation, defence and other issues in international trade and procurement.

The report on trade policy underscores the Trump administration’s commitment to prioritizing American interests in federal procurement through “Buy American” policies. This approach has significant implications for the United States’ participation in the World Trade Organization’s Government Procurement Agreement (WTO GPA).​

Key Insights from the Report:

Review of Trade Agreements:

The administration is conducting a comprehensive review of all trade agreements, including the WTO GPA, to assess their impact on federal procurement policies. This initiative aims to ensure that such agreements favor domestic workers and manufacturers. ​

Concerns Over Reciprocity:

The report highlights concerns regarding the reciprocity of the WTO GPA, suggesting that the U.S. may not be receiving equitable access to other countries’ procurement markets compared to the access it provides. This perceived imbalance is prompting considerations to reassess the terms of U.S. participation in the GPA. ​

Assessment of Foreign Subsidies:

The Office of Management and Budget has been directed to evaluate the impact of foreign government subsidies on U.S. federal procurement programs. The objective is to identify and address any market distortions that may disadvantage American suppliers. ​

Impact on International Trade Relations:

Such moves could lead to tensions with trading partners and might invite reciprocal measures, potentially affecting U.S. firms’ access to foreign procurement markets.

Potential Actions

Renegotiation or Withdrawal:

Based on the findings of these assessments, the administration may consider renegotiating the terms of U.S. participation in the WTO GPA or, if deemed necessary, withdrawing from the agreement to better align with “Buy American” objectives. ​

Conclusion

The Trump administration’s focus on strengthening “Buy American” policies reflects a broader strategy to bolster domestic industries. However, any steps to renegotiate or withdraw from the WTO GPA would need to carefully weigh the benefits of enhanced domestic preferences against the risks of diminished international market access and potential trade disputes.

Source: President Trump and Buy American — The Overlooked Report