Everyone is wearing blue around American city (6)
I believe the answer is:
dallas
'american city' is the definition.
'Dallas' can be an answer for 'city' (Dallas is an example). I'm unsure of the 'american' bit.
'everyone is wearing blue around' is the wordplay.
'everyone' becomes 'all' (all people).
'is wearing' means one lot of letters goes inside another.
'blue' becomes 'sad' (similar in meaning).
'around' is a reversal indicator.
'all' going into 'sad' is 'sallad'.
'sallad' reversed gives 'DALLAS'.
Can you help me to learn more?
(Other definitions for dallas that I've seen before include "City in the heart of Texan oil fields" , "The Ewing family saga" , "Mysteriously, all sad in the US city" , "JR, Sue Ellen and Bobby lived there" , "former TV series" .)