Who Gets Protection from Protectionism? Evidence from the Buy American Act
Contemporary protectionist policies in the U.S. are often initiated by the executive branch but enforced unevenly across firms. We argue that such uneven enforcement arises because legislators—with both institutional capacity and local motivation—shield connected firms from executive protectionist measures. We test this claim using the Trump administration’s Buy American Act (BAA), which penalized firms reliant on foreign, especially Chinese, suppliers. Combining firm-level data on federal contracts, supply chains, and campaign contributions, we analyze 1,958 firms (2015–2019).