{"id":3563,"date":"2026-07-24T20:12:51","date_gmt":"2026-07-24T20:12:51","guid":{"rendered":"https:\/\/interstatelogisticshubs.com\/?p=3563"},"modified":"2026-07-24T20:12:51","modified_gmt":"2026-07-24T20:12:51","slug":"a-us-tariff-that-beijing-will-love","status":"publish","type":"post","link":"https:\/\/interstatelogisticshubs.com\/?p=3563","title":{"rendered":"A US tariff that Beijing will love"},"content":{"rendered":"
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Give President Trump his due: He has confronted China more forcefully, and rebuilt more of American industry, than any president in decades.\u00a0\u00a0The tariffs worked.\u00a0\u00a0They dragged trading partners to the table and pulled real money back onshore; Taiwan alone committed $250 billion to build chips here.<\/p>

Read more Commiecrats once enthusiastically supported paper ballots<\/a><\/p>\n

This is exactly why it\u2019s worth saying plainly that the next tariff under discussion, a broad duty on imported semiconductors, would be a mistake.\u00a0\u00a0Not a betrayal of the agenda, but a departure from what made the agenda work.<\/p>\n

The thing that has worked is precision.\u00a0\u00a0The January proclamation hit a narrow band of advanced chips, the Nvidia H200 and the AMD MI325X among them, and left everything else alone.\u00a0\u00a0That was a smart move by the Trump administration.\u00a0\u00a0A wall-to-wall tariff on every chip crossing the border is a different animal, and Beijing would love nothing more than to watch us build it.<\/p>\n

Consider the factory floor.\u00a0\u00a0Reshoring chip production is the right call.\u00a0\u00a0But a fab takes years and tens of billions of dollars to stand up, and until American capacity catches up, our own manufacturers run on imported legacy chips.\u00a0\u00a0That means carmakers. Defense contractors. medical device firms \u2014 the tech companies everyone calls the crown jewels of the economy.\u00a0\u00a0Tax those chips today, and you don\u2019t conjure a domestic supplier out of nowhere.\u00a0\u00a0You just make it pricier to build things in America.\u00a0\u00a0A single modern car carries somewhere between 1,000 and 3,000 semiconductors.<\/p>\n

The timing makes it worse.\u00a0\u00a0RAM prices already jumped 90 percent in the first quarter of this year.\u00a0\u00a0A tariff on top of that is gasoline on a grease fire.\u00a0\u00a0The Information Technology and Innovation Foundation ran the math: A 25-percent semiconductor tariff would shave $1.6 trillion off GDP over ten years and cut technology consumption by more than a quarter.\u00a0\u00a0At 50 percent, the damage climbs to $4.4 trillion.\u00a0\u00a0Those figures represent production lines that go dark and jobs that never get created.<\/p>

Read more King Solomon solves the Daylight Savings Time dilemma<\/a><\/p>\n

Now comes the part that should stop everyone cold.\u00a0\u00a0China is racing us on two tracks at once: factory output and frontier innovation.\u00a0\u00a0A broad tariff spots the Chinese a lead on both.\u00a0\u00a0We would be taxing the inputs our chipmakers and A.I. labs while their competitors in Shenzhen pay none of that.\u00a0\u00a0Handicap your fastest runner, and guess who wins.\u00a0\u00a0The American firms designing the best chips and training the best models are the biggest advantage we hold over Beijing.\u00a0\u00a0Blunting it on purpose makes no sense.<\/p>\n

The national security argument, the one tariff-supporters lean on hardest, actually cuts the same way.\u00a0\u00a0Of course semiconductors sit inside everything the military depends on \u2014 missile defense, secure comms, satellites, radar.\u00a0\u00a0That is precisely the reason to keep them flowing.\u00a0\u00a0Choke the supply or spike the price, and procurement slows and readiness suffers.\u00a0\u00a0You cannot strengthen the defense base by starving it of parts.<\/p>\n

So no, this is not a case for going soft on China.\u00a0\u00a0It is a case for doing what the president already does better than anyone: hitting the target, and only the target.\u00a0\u00a0Keep the aim tight. Protect the incentives already pulling fabs back onto American soil, including the CHIPS Act tax credit, set to lapse at the end of 2026.\u00a0\u00a0Save the tariffs for the imports that genuinely threaten us, and leave the ordinary chips that keep American plants running.<\/p>\n

A well aimed tariff makes America stronger and China weaker.\u00a0\u00a0A blanket chip tariff would manage the opposite.\u00a0\u00a0Trump has beaten Beijing before by being surgical about it.\u00a0\u00a0The same play works now.<\/p>

Read more Sophie\u2019s choice<\/a><\/p>\n

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\"<p><em>Image:<\/figure>\n<\/p>\n

Image: Gage Skidmore via Flickr, CC BY-SA 2.0.<\/em><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Give President Trump his due: He has confronted China more forcefully, and rebuilt more of American industry, than any president in decades.\u00a0\u00a0The tariffs worked.\u00a0\u00a0They dragged trading partners to the table and pulled real money back onshore; Taiwan alone committed $250 billion to build chips here. Read more Commiecrats once enthusiastically supported paper ballots This is […]<\/p>\n","protected":false},"author":1,"featured_media":1366,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,344],"tags":[1433],"class_list":["post-3563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-policy","category-tariffs","tag-related-topics-tariffs-china"],"yoast_head":"\nA US tariff that Beijing will love - Interstate Logistics Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/interstatelogisticshubs.com\/?p=3563\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A US tariff that Beijing will love - Interstate Logistics Hub\" \/>\n<meta property=\"og:description\" content=\"Give President Trump his due: He has confronted China more forcefully, and rebuilt more of American industry, than any president in decades.\u00a0\u00a0The tariffs worked.\u00a0\u00a0They dragged trading partners to the table and pulled real money back onshore; Taiwan alone committed $250 billion to build chips here. 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