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EO 13881Executive OrderTrump 45 · R Quiet signal

Executive Order 13881

Maximizing Use of American-Made Goods, Products, and Materials

This executive order tightens domestic content requirements for federal procurement under the Buy American Act. It directs the FAR Council to propose rules lowering the foreign-origin threshold from 50% to 5% for iron/steel and 45% for other products, while increasing price preference margins for domestic bids. It also requires a Commerce/OMB report on further potential reductions to 25%.

Federal Register Open PDF 84 FR 34257

Impact dates

  1. FAR Council to consider proposing rules for notice and public comment (foreign-origin thresholds and price differential formula)

  2. Commerce Secretary and OMB Director report on additional FAR changes and feasibility of 25% threshold

Key directives

  • FAR Council to consider proposing rules within 180 days to lower foreign-origin threshold to 5% for iron/steel end products
  • FAR Council to consider proposing rules within 180 days to lower foreign-origin threshold to 45% for all other end products
  • FAR Council to consider proposing rules within 180 days to increase price differential formula to 20% (non-small businesses) and 30% (small businesses)
  • FAR Council to evaluate public comments and promptly issue final rule if appropriate
  • Executive agency heads to issue conforming regulations
  • Secretary of Commerce and OMB Director to submit report within 180 days on additional FAR changes including feasibility of reducing 45% threshold to 25%

Who is ordered

Timeline

Immediate

  • EO 10582 superseded to extent inconsistent; subsections 2(a) and 2(c) revoked upon final rule issuance

Near term (90d)

  • FAR Council must propose rules for notice and comment within 180 days

Long term

  • Final rule issuance after comment evaluation; potential incremental threshold reduction to 25% based on report recommendations

Risks & tensions

  • Final rule timing vague: 'promptly' undefined after comment period
  • Proposed thresholds are 'consider proposing'—not mandatory issuance, creating implementation uncertainty
  • Incremental reduction to 25% contingent on future report, not automatic
  • National security waiver and public interest exceptions preserved, potentially limiting enforcement scope
  • Small businesses receive larger preference margin (30% vs 20%), which may complicate bid evaluations
Executive Order 13881: Maximizing Use of American-Made Goods, Products, and Materials · Executive Orders