Tariffs must be part of the toolkit to manage the influx of products from Chinese tech companies, whether from e-commerce platforms like Temu or from a growing number of low-cost microchip manufacturers set to flood the global market with semiconductors. Regardless of who occupies the White House, tariffs will remain a crucial tool in this battle.
“We need to use all of our policy levers to tackle this issue,” said Emily Kilcrease, Senior Fellow at the Center for a New American Security, during a webinar hosted by the Center for American Progress on Monday. “We have export controls, outbound investment restrictions, and of course, tariffs. While applying tariffs to something like semiconductors is complex, especially with the anticipated surge of legacy chips into the U.S., they are necessary. We must use all the tools at our disposal,” she explained.
In May, the Biden administration imposed higher tariffs on semiconductors made in China.
Adam Conner, Vice President of Technology Policy at the Center for American Progress, emphasized the importance of taking Trump’s tariff proposals seriously. He referred to it as a “policy of prevention,” noting that tariffs have become a relatively “new approach” in addressing China’s economic influence, adding, “I’m not sure how his plan will work, but it’s a direction we’re already heading.”
While the Center for American Progress is generally viewed as a Democratic think tank, it has not criticized Trump’s tariff policies, likely because the Biden administration has largely continued them.
A Strategic Focus on China
China’s actions at home and abroad are often in direct conflict with U.S. interests, but as the Center for American Progress report titled A Progressive, Principled, and Pragmatic Approach Toward China Policy highlights, “The United States has limited time, attention, and resources, so we must focus on what’s truly vital.” The report stresses that if a policy hasn’t worked, it’s time to try something different.
China does many things at home; around the world; and in its relations with the United States that are contrary to our interests. But the United States has limited time, attention, and money, so we have to focus on the truly vital. No matter its provenance or pedigree, if a policy has not worked, we should do something else.
China’s actions at home and abroad are often in direct conflict with U.S. interests, but as the Center for American Progress report titled A Progressive, Principled, and Pragmatic Approach Toward China Policy highlights, “The United States has limited time, attention, and resources, so we must focus on what’s truly vital.” The report stresses that if a policy hasn’t worked, it’s time to try something different.
During the webinar, David Rank, Senior Fellow at the Center for American Progress, raised the issue of the de minimis loophole, which allows platforms like Shein and Temu to ship products to the U.S. duty-free, effectively bypassing traditional import restrictions. Rank also questioned whether policymakers can convince national security hawks that economic security is just as critical. For instance, applying tariffs on Chinese-made cars might not seem like a national security issue, but as Kilcrease argued, “It’s an economic security issue because a strong domestic auto industry is vital for our economy—and potentially our national security.”
See CPA’s statement on Senate de minimis bill that would impact Temu and Shein.
A Complex Knot
The webinar, which was loosely based on a report by Rank and others at the Center for American Progress, emphasized the need for foresight in addressing China’s economic and technological challenges. The report warned that without careful planning, “U.S. workers could be left behind by a race-to-the-bottom economics.” It also offered a sobering reminder of the U.S.’s limited power to influence China’s trajectory: “The U.S. spent 20 years, a trillion dollars, and over 2,000 American lives in Afghanistan with little impact. We have far less influence on China. Our strongest influence lies within our own borders, and that’s where we should focus.”
“It’s an economic security matter because you want to make sure you have a vibrant domestic auto industry,” said Kilcrease, suggesting the death of the U.S. auto industry might as well be a national security matter.
“Whether its de minimis or CFIUS cases, the way you can connect the dots on what is happening with China is that there has been an unexpected emergence of China tech companies in our space and policy makers are just grasping at whatever tool is available to them to stem the tide,” said Kilcrease. “That’s the common denominator. Look at the clean energy space and the push back against any type of partnership between the U.S. and China companies, which puts U.S. companies in a tough spot because China is such an important producer in that space. It’s a tangled knot. We have not figured out how to untangle it yet.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
Tariffs Part of ‘Toolkit’ in Dealing with China Tech Imports
Tariffs must be part of the toolkit to manage the influx of products from Chinese tech companies, whether from e-commerce platforms like Temu or from a growing number of low-cost microchip manufacturers set to flood the global market with semiconductors. Regardless of who occupies the White House, tariffs will remain a crucial tool in this battle.
“We need to use all of our policy levers to tackle this issue,” said Emily Kilcrease, Senior Fellow at the Center for a New American Security, during a webinar hosted by the Center for American Progress on Monday. “We have export controls, outbound investment restrictions, and of course, tariffs. While applying tariffs to something like semiconductors is complex, especially with the anticipated surge of legacy chips into the U.S., they are necessary. We must use all the tools at our disposal,” she explained.
In May, the Biden administration imposed higher tariffs on semiconductors made in China.
Adam Conner, Vice President of Technology Policy at the Center for American Progress, emphasized the importance of taking Trump’s tariff proposals seriously. He referred to it as a “policy of prevention,” noting that tariffs have become a relatively “new approach” in addressing China’s economic influence, adding, “I’m not sure how his plan will work, but it’s a direction we’re already heading.”
While the Center for American Progress is generally viewed as a Democratic think tank, it has not criticized Trump’s tariff policies, likely because the Biden administration has largely continued them.
A Strategic Focus on China
China’s actions at home and abroad are often in direct conflict with U.S. interests, but as the Center for American Progress report titled A Progressive, Principled, and Pragmatic Approach Toward China Policy highlights, “The United States has limited time, attention, and resources, so we must focus on what’s truly vital.” The report stresses that if a policy hasn’t worked, it’s time to try something different.
China’s actions at home and abroad are often in direct conflict with U.S. interests, but as the Center for American Progress report titled A Progressive, Principled, and Pragmatic Approach Toward China Policy highlights, “The United States has limited time, attention, and resources, so we must focus on what’s truly vital.” The report stresses that if a policy hasn’t worked, it’s time to try something different.
During the webinar, David Rank, Senior Fellow at the Center for American Progress, raised the issue of the de minimis loophole, which allows platforms like Shein and Temu to ship products to the U.S. duty-free, effectively bypassing traditional import restrictions. Rank also questioned whether policymakers can convince national security hawks that economic security is just as critical. For instance, applying tariffs on Chinese-made cars might not seem like a national security issue, but as Kilcrease argued, “It’s an economic security issue because a strong domestic auto industry is vital for our economy—and potentially our national security.”
See CPA’s statement on Senate de minimis bill that would impact Temu and Shein.
A Complex Knot
The webinar, which was loosely based on a report by Rank and others at the Center for American Progress, emphasized the need for foresight in addressing China’s economic and technological challenges. The report warned that without careful planning, “U.S. workers could be left behind by a race-to-the-bottom economics.” It also offered a sobering reminder of the U.S.’s limited power to influence China’s trajectory: “The U.S. spent 20 years, a trillion dollars, and over 2,000 American lives in Afghanistan with little impact. We have far less influence on China. Our strongest influence lies within our own borders, and that’s where we should focus.”
“It’s an economic security matter because you want to make sure you have a vibrant domestic auto industry,” said Kilcrease, suggesting the death of the U.S. auto industry might as well be a national security matter.
“Whether its de minimis or CFIUS cases, the way you can connect the dots on what is happening with China is that there has been an unexpected emergence of China tech companies in our space and policy makers are just grasping at whatever tool is available to them to stem the tide,” said Kilcrease. “That’s the common denominator. Look at the clean energy space and the push back against any type of partnership between the U.S. and China companies, which puts U.S. companies in a tough spot because China is such an important producer in that space. It’s a tangled knot. We have not figured out how to untangle it yet.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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