President Trump’s reciprocal tariffs are on pause – for now. Countries now have an additional 90 days to negotiate trade deals with the United States, with the exception of China, against which the administration has levied 145% tariffs. But the Trump administration would be well-served to use this time to consider how their ambitious policies can best advance the administration’s economic goals. In the next few weeks, the U.S. must decide: Will it negotiate nuanced policies that secure its economic leadership, or risk undermining its influence with blanket restrictions that will raise costs and disrupt supply chains?
President Trump’s instincts on bolstering American industry are correct, but true economic security requires more than tariffs. It demands a strategy that fosters stability, resilience and technological competitiveness, thereby safeguarding national interests.
Businesses respond to incentives and policy decisions shape investment. But if Washington wants companies to build and expand in the U.S., it must create an environment of certainty. We already witnessed how the “Liberation Day” tariff announcements sent global markets into flux as companies tried to understand how they would be affected by these changes.
Business leaders cannot make long-term commitments if they are constantly adjusting to shifting trade policies, tariffs, or regulatory changes. A more comprehensive approach would deploy other valuable tools, in addition to trade approaches, in a policy arsenal to ensure the U.S. is encouraging investment in innovation, strategic trade partnerships and balanced security measures. Maintaining these priorities preserves economic security and creates a stable, prosperous environment for American industries.
The first priority must be ensuring that U.S. firms can compete on the global stage. Instead of isolating American industry, policymakers should pursue new trade agreements and digital trade policies that strengthen access to global markets. The USMCA and the U.S.-Japan Digital Trade Agreement are instructive models for how the U.S. can expand its economic influence while protecting domestic interests. Additionally, the administration should carefully consider tariffs on manufacturing inputs, components, and tech products and avoid any actions that could lead to unintended consequences that drive up costs or push production offshore.
At the same time, the U.S. must double down on investments in the technologies that will define the next century. Semiconductors, artificial intelligence, quantum computing, and other advanced industries are not just economic drivers; they are strategic assets. Investments in U.S. semiconductor leadership have proven successful, but further steps – such as streamlining permitting and extending the investment tax credit – are needed to maintain momentum. Congress should also restore immediate research and development tax expensing to ensure that U.S. firms continue to lead in existing and emerging technological innovation rather than ceding ground to foreign competitors.
A comprehensive approach to economic security must also recognize the way that key industries intersect with and uphold one another. Energy policy is inextricable from tech policy, as AI, data centers and advanced manufacturing depend on reliable, affordable energy. Yet, at present, logistic hurdles are slowing modernization projects. For instance, six major regional power grid operators outside of Texas are upgrading transmission lines with technology that could increase capacity by 40%. However, all six expect delays of one to two years beyond the July 2025 project deadline, citing a shortage of available vendors.
Outdated energy policies threaten to constrain the very industries the U.S. seeks to lead. Permitting reform is essential to accelerating infrastructure projects, and policymakers should prioritize the deployment of advanced nuclear power, including small modular reactors, to meet the energy demands of the coming decades. Failure to grow energy resiliency will stall innovation and risk major disruptions to the power grid when demand inevitably outpaces supply.
Finally, economic security must incorporate smart, targeted national security measures. Protecting critical technologies from foreign adversaries is necessary, but unpredictable export controls and investment restrictions can do more harm than good. When American businesses face sweeping limits on their ability to sell and compete globally, they lose market share, and adversaries will be more than happy to step in. Security measures should be precise, focusing on high-risk technologies rather than imposing blanket restrictions on commercial products. The U.S. must also work closely with allies to ensure that China and other competitors cannot exploit policy gaps.
Economic security is not about retreating behind protectionist policies – it is about strengthening the foundations of American competitiveness. To achieve this, the administration must confer with business leaders in vital industries across the technology ecosystem to ensure the policies they pass do not have unintended consequences.
President Trump’s focus on revitalizing American industry is the right one, but must be approached strategically to promote innovation, trade and long-term growth. This requires giving businesses the certainty to invest, expanding market access, and ensuring that security policies protect national interests without sacrificing economic growth. If the U.S. wants to lead the global economy, it must act now. It cannot afford to get this moment wrong.
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