US President Donald Trump’s continued reliance on tariffs as a tool to counter China’s economic ascent may be accelerating the very outcome he seeks to prevent, argues Kyle Chan, a postdoctoral researcher at Princeton University specialising in Chinese industrial policy.
In a recent commentary, Chan critiques the administration’s focus on short-term trade measures, stating, “President Trump’s blinkered obsession with short-term band-aids like tariffs, while actively undermining what makes America strong, will only hasten the onset of a Chinese-dominated world.”
Chan emphasises that while tariffs can offer temporary relief, they fail to address the structural advantages China has cultivated through sustained investment in industrial policy, infrastructure and clean technology. He notes that China’s strategic initiatives, such as the “Made in China 2025” plan, have positioned it as a leader in sectors like electric vehicles, solar energy and high-speed rail.
The recent 90-day tariff truce between the US and China, which saw the US reduce tariffs on Chinese goods from 145% to 30% and China lower its tariffs on US imports to about 10%, offers only a temporary de-escalation. Analysts warn that without addressing the deeper trade imbalances and investing in domestic capabilities, the US risks falling further behind.
Moreover, internal divisions within the Republican Party further complicate the US response. While some GOP members advocate for investments in clean energy to compete with China, others, including President Trump, prefer to bolster fossil fuels and roll back clean energy incentives. This divergence undermines a cohesive strategy to counter China’s advancements in green technology.
Chan’s analysis underscores the need for a comprehensive approach that goes beyond tariffs. He advocates for robust investments in research and development, infrastructure, and education to revitalise American manufacturing and innovation. Without such measures, the US may find itself ceding leadership in critical industries to China, with long-term implications for global economic and geopolitical dynamics.
S Gopal Puri
