It is the 1 st person conjugation of the verb Fare.
It is not easy to translate for fa means to make/to do in Italian.
As in:
I am doing something - Sto facendo qualcosa
What are you doing? - Che cosa state facendo?
In the context of the song "fa fa l'americano"
The 1on1 translation is "it makes the American go"
Free translated it means: "I am doing something and that makes the American go!
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