Chris Braddock and the Washington Post editorial board have covered why the "Buy American" provisions in the stimulus package are a bad idea, here is Tom Donohue's most recent statement on the topic:

Some have slammed the U.S. Chamber for opposing ‘Buy American’ provisions, calling our position ‘economic treason.’ Try economic patriotism. Such provisions would cost American jobs, trigger retaliation from our trading partners, slow economic recovery by delaying shovel-ready infrastructure projects, and cede our leadership role as a longstanding proponent of free and fair trade and global engagement. If our goal is to create good-paying jobs at home by selling American-made goods and services overseas—where 95% of the world’s consumers live—then ‘Buy American’ requirements don’t make sense. If we refuse to buy foreign-made goods, then our trading partners will refuse to buy from us. And since we are the world’s largest exporter, who will be hurt more?

‘Buy American’ casts our trading partners as enemies, which is absurd. Foreign firms employ over five million Americans at good wages, for a total payroll of more than $350 billion. Folks outside the Beltway understand this. In fact, state governors compete intensely to attract the next Toyota or Siemens facility. It’s easy to demagogue opposition to such a pleasing sounding thing as ‘Buy American.’ But it’s time to face the reality about the real-world consequences of these provisions for American workers, businesses, and our nation’s global standing. And let’s take note of history. In 1930, when Congress approved the Smoot-Hawley tariffs, other countries responded by closing their markets. The upshot was a collapse in U.S. trade that turned a sharp recession into the Great Depression.

Those who don’t know history are doomed to repeat it. Let’s not make the same mistakes again, especially now.

For more, see our multi-industry letter to Congress.

Update - Some more reading on the topic:

• Protectionism is False Protection
• "Buy American" and the Not Science of Lou Dobbs
• Reading List - 2 Feb 2009
• No Time For a Trade War
• Morning News - "Buy American" and National Interests
• "Buy American" and Stimulus