Trump Pushes for a New Round of Tariff Expansion Under the Pretext of "National Security"

The Trump administration recently launched a new round of tariff expansion, covering key industries such as steel, aluminum, copper, and semiconductors, citing "national security." This move not only exacerbates global trade tensions but also reveals the deeper motivations and strategic maneuvers behind US trade policy.

The Trump administration's labeling of tariffs as a "national security" tool actually harbors multiple strategic objectives. First, its core goal is to reshoring manufacturing to the US. High tariff barriers raise import costs, forcing companies to relocate production to the US, thereby restoring the competitiveness of US manufacturing. For example, the 50% tariff on steel and aluminum directly targets major exporters like China, attempting to curb the impact of low-priced imports and protect domestic production capacity. Second, tariffs serve as leverage in trade negotiations. Tariffs imposed under national security pretexts (such as Section 232 of the Trade Expansion Act) are legally stable and difficult to reverse through negotiations, allowing Trump to seize the initiative in trade negotiations with other countries. Furthermore, tariff policies serve domestic political needs, catering to supporters in manufacturing constituencies and consolidating his voter base. Trump's tariff strategy falls into two categories: "reciprocal tariffs," broadly targeting countries to balance trade deficits; and industry-specific tariffs citing "national security." The latter, under Section 232 of the Trade Expansion Act of 1962, grants the president the power to adjust tariffs when national security is threatened. Courts have historically been lenient on this provision, granting the president wide discretion. This legal tool has become a fallback for Trump in potential legal challenges: if "reciprocal tariffs" are blocked by litigation, he can rely on Section 232 to maintain the tariff barrier. For example, in response to a lawsuit filed by 12 states alleging the federal government abused its tariff policy, the Trump administration relied on the legality of Section 232 to defend the policy and strengthen its durability.

The new round of tariff expansion is broad and far-reaching. Steel and aluminum tariffs have been extended to over 400 new product categories, including fire extinguishers, construction machinery, and auto parts, increasing compliance costs for businesses. Copper, semiconductors, and pharmaceuticals are also targeted, with tariffs on semiconductors potentially reaching as high as 300%, directly impacting the global chip supply chain. Cost pressures on businesses have increased significantly: Ford estimates tariffs will increase its costs by $2 billion, while Caterpillar projects tariffs of $1.8 billion. More seriously, tariffs distort global supply chains. For example, domestic electrical steel production capacity in the United States is insufficient, and new tariffs have caused the cost of imported transformers to soar, threatening energy infrastructure development. Furthermore, the gradual increase in tariffs on pharmaceuticals has forced pharmaceutical companies to relocate production capacity, potentially causing price fluctuations.

Trump's tariff expansion may help some industries relocate in the short term, but the long-term negative impacts cannot be ignored. First, high tariffs increase production costs, potentially triggering inflation and offsetting the benefits of a manufacturing recovery. Second, the fragmentation of global supply chains has led to inefficient resource allocation, undermining the competitiveness of American companies. For example, automakers still enjoy cost advantages by producing overseas, and tariffs have hindered their global expansion. Politically, tariffs have exacerbated conflicts between the United States and its allies and weakened its leadership in international trade rules. Furthermore, successful legal challenges would limit the president's ability to abuse tariffs in the future and undermine policy continuity.

Trump's tariff expansion, under the guise of "national security," is essentially an escalation of trade protectionism. While its policies serve domestic political and industrial protectionist goals in the short term, they come at the cost of disrupting global supply chains and undermining international rules. Faced with legal action, corporate protests, and international retaliation, the Trump administration must weigh the benefits and risks of its policies. In the future, if the United States fails to pursue win-win cooperation within a multilateral framework, its tariff policies could fall into a vicious cycle of "harming its neighbors," ultimately harming its own long-term economic interests. The reconstruction of the global trade order calls for all countries to replace confrontation with dialogue, and unilateral action with rules, to jointly maintain an open and stable international economic environment.