In his post-inaugural rally in 2025, Trump said that “tariffs… is the most beautiful word in the dictionary.” Over the past several years, Washington has increasingly treated trade with China as a national security issue. Tariffs, export bans, and investment restrictions have become the tools of choice to curb Beijing’s technological and industrial ambitions. But these sweeping measures have come with a price, and Americans are the ones paying it.
Since 2018, tariffs have cost the average U.S. household around $2,000 a year, raising prices across everything from coffee to couches. Not only have they raised costs, but have invited retaliatory measures. Beijing’s restrictions to importing soybeans from the US hit American farmers especially hard. Although Xi and Trump have reached a temporary truce, farmers across the country will struggle to recover from damages. The current deal is merely a bandaid. The US has suspended the heightened reciprocal tariffs until November 2026, not eliminated them. This temporary pause confirms that the most immediate gains come from reversing the self-inflicted damage of broad tariffs on low-risk goods. What was meant to strengthen U.S. resilience has instead strained domestic industries, increased costs for consumers, and reduced our leverage abroad. Defending U.S. interests doesn’t have to entail economic self-sabotage. The real challenge is to separate what truly threatens national security from what doesn’t, and to craft trade policies that reflect that distinction.
A smarter way forward: targeted tariffs
The United States has to move away from broad-based tariffs toward targeted trade controls. Instead of treating all Chinese imports as threats, policymakers should tailor restrictions based on the risk posed by each sector.
- Protect what’s critical. Where trade directly fuels China’s military modernization, such as advanced semiconductors, chipmaking equipment, and sensitive AI tech, controls must remain firm. These are legitimate security risks, and limiting access is worth the economic cost.
- Trade where it’s safe. Selling soybeans to China doesn’t endanger U.S. national security. In fact, agricultural exports are a vital lifeline for American farmers. Rolling back tariffs on low-risk goods could pave the way for reciprocal Chinese concessions, reviving markets that sustain rural America.
- Collaborate where it’s necessary. Take solar energy: China dominates over 75% of every key stage of solar panel production. Cutting off these imports entirely would undermine US climate goals. The better approach is dual, allowing critical imports now while investing in domestic manufacturing through initiatives like the CHIPS and Inflation Reduction Acts.
Some argue that broad tariffs are a show of strength as we enter a “new Cold War” with China. But evidence suggests otherwise. Tariffs are a tax paid almost entirely by US consumers and importing firms. This burden takes a larger share of income from poorer households. Rather than hurting Beijing, these tariffs have pushed China to diversify supply chains and accelerate self-reliance, reducing US leverage in the long run.
Targeted measures, by contrast, work. The October 2022 export controls on semiconductor equipment effectively disrupted China’s high-end chip production and slowed its military and AI capabilities in the short term, without triggering the kind of widespread economy damaging trade war seen with the broad tariffs. This is what effective tariffs looks like: limiting strategic vulnerabilities while keeping the US economy open, innovative, and competitive.
The bottom line
Tariffs were meant to protect America. Instead, they’ve taxed Americans. If the goal is to preserve both national security and economic strength, the answer lies not in isolationism, but in protecting sensitive technologies while maintaining cooperation where it serves US interests. The future of US trade policy shouldn’t be about choosing between security and prosperity. With targeted trade measures, America can have both!
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