Buying American is a symbol of personal identity and has been a focus over the years for US policymakers, including both the Obama and Trump administrations. This emphasis will continue with the Biden administration.

The common belief is that domestically manufactured products carry a hefty price tag. But what is the bottom line?

According to a study by the University of Chicago Booth School of Business, the price premium ranges from 1.9% to 28%. The lower priced items tend to demand the highest premium as one would expect. This study was done prior to the implementation of tariffs on Chinese products, which range from 10% to 30%.

So in the current trade environment, assuming that the US continues to implement tariffs on Chinese products, it appears that the price tag premium is not as significant as one would imagine.

Are Americans willing to spend a little more to continue the revitalization of US manufacturing?

You can read the full study HERE