Buy American Restrictions

A section of the American Recovery and Reinvestment Act prohibiting the use of most foreign iron, steel or manufactured items in projects sponsored by the Act. Proponents argued the restrictions were intended to stimulate American manufacturing and thereby to create American jobs. Critics contended they were inefficient and had the potential to incite retaliatory measures from other countries, which could have a net negative impact on the U.S. economy. See also: Trade War.