The law would reduce and suspend tariffs on certain materials U.S. companies must import to make their products. It passed both houses of Congress with bipartisan support.
The president signed the bill into law in a ceremony in the East Room of the White House.
The National Association of Manufacturers says the new law will help create jobs, cut costs for businesses and consumers and boost U.S. exports. The industry trade group says studies show the bill would increase production by $4.6 billion and support 90,000 jobs.