Tariffs as National Risk Management
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Tariffs as National Risk Management
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Tariffs are typically recognized as a tax. But that framing assumes the only objective is efficiency.
Since China’s entry into the World Trade Organization in 2001, the balance of global manufacturing power has shifted dramatically. Where the United States once dominated, it now depends on foreign supply in strategically important sectors. In an era of supply chain fragility and strategic uncertainty, industrial capacity is not just an economic variable – it is leverage.
The rollout of broad tariffs in 2025 drew widespread criticism. The more consequential question is whether a targeted industrial strategy can reduce strategic vulnerability without imposing unnecessary economic cost, and how much exposure a nation can afford in the name of free trade.