What are the intent and impact of domestic content requirements?

Question

What inefficiency would occur if the U.S. imposed domestic content requirements on manufacturing goods?

Answer 1

This is the same thing as insisting that products be manufactured domestically. This would be great for American workers but not so good for American consumers. It will limit choice, increase the cost of products and cause certain products to be very scarce. For example, almost all computer motherboards are now imported, mostly from China. If the US insisted that motherboards be manufactured domestically, it would make personal computers VERY expensive and quite scarce.

On the other hand, it would create a lot of manufacturing jobs domestically and domestic manufacturers would benefit tremendously.