Today’s Binary Response is in response to this BBC News article which was published ten days ago discussing President Trump’s tariff strategy and its implications for the U.S. economy. The BBC article is specifically about technology tariffs: as a result, I specifically discuss technology tariffs but the fact is Trump’s entire strategy with tariffs is bad for the economy.
As President Trump continues to position himself as a defender of American industry, the possibility of fresh tariffs—especially on imports from China—suggests a familiar pattern that will have significant ripple effects both at home and abroad. Trump’s plan to increase tariffs echoes the protectionist strategies he used during his first term. The rhetoric is the same: America First, restore domestic manufacturing, stop being taken advantage of by foreign nations, and bring jobs back to American soil.
The issue now, however, is that the global economy has changed—and nowhere is that change more evident than in the technology industry. Trump is targeting Chinese manufacturing and tech imports even more aggressively, with specific attention paid to electric vehicles, semiconductors, and consumer electronics. It’s a policy vision that suggests not only taxing imports to make American products more attractive, but also strategically weakening China’s dominance in certain technological areas.
The focus on technology is no accident. Over the last two decades, the United States has grown increasingly dependent on overseas manufacturing—especially in China—for smartphones, laptops, networking equipment, and countless other pieces of hardware. At the same time, China has poured money into tech innovation and now challenges the U.S. in sectors like artificial intelligence, quantum computing, 5G telecommunications, and clean tech. Trump’s rhetoric frames this not as competition but as an existential threat to American innovation and security. By applying tariffs to Chinese-made tech products, he’s attempting to pull the brakes on China’s growth and nudge U.S. companies to reorient supply chains away from Asia entirely.
He is promising a 125% tariff on all technology-related imports from China. Components like microchips and circuit boards are often sourced from or assembled in China, even if the design and software come from American firms. Many major U.S. tech companies have manufacturing partners in Asia because of the region’s lower costs and well-developed infrastructure. A steep tariff on these products means price increases for American consumers, who are already facing inflation and higher living costs.
The technology ecosystem is built on efficiency and speed. Slapping tariffs on imports introduces uncertainty, delays, and—more importantly—price hikes, which will lower sales. Tech companies depend on a global web of suppliers and assemblers. Changing those suppliers and assemblers is not just costly—it’s a logistical nightmare. Forcing firms to move supply chains overnight will have disastrous short-term consequences, especially for small and mid-sized companies that lack the financial buffer to absorb increased costs. These tariffs would end up hampering U.S. competitiveness more than helping it.
Even within the U.S., many of the components used in homegrown technological products are simply not manufactured at scale domestically. There is no massive stockpile of American-made semiconductors or display panels waiting to be tapped into once Chinese imports are hit with tariffs. Trump can push for domestic production, but building up factories takes time—years, not months—and billions of dollars. The CHIPS Act is a step in that direction, but it’s still in its early stages. If Trump accelerates tariffs before the country is ready to produce domestically at scale, it will result in a shortfall of key components and increased pressure on U.S. manufacturers.
Then there’s the matter of retaliation. China has proven time and again that it won’t hesitate to strike back when it’s hit with tariffs or sanctions. In past trade skirmishes, Beijing has retaliated with its own tariffs, slowed down customs clearances for American goods, and targeted key U.S. companies like Apple, Google, Microsoft, and Tesla. With Trump’s tariffs, American tech companies with business ties to China will find themselves squeezed from both sides—facing higher import costs and losing access to a massive consumer market. Companies that rely on Chinese components will also face regulatory scrutiny or be nudged out of the market entirely.
Another concern is the consumer impact. If tariffs go into effect on technology products, it’s not just businesses that will feel the pinch. Everyday Americans will see prices go up on everything from smartphones to smart TVs to routers and headphones. For a country that runs on technology in both professional and personal life, the sticker shock will be widespread. Trump’s promise of putting America first will come at the cost of making daily life more expensive for millions of Americans who rely on affordable access to tech products.
Some argue that these costs are a necessary short-term sacrifice for long-term independence from China. That may be true to an extent, but the success of such a strategy depends heavily on coordination, investment, and timing. With tariffs being rolled out without a comprehensive industrial policy to support domestic manufacturing, they could end up doing more harm than good. Trump has promised to bring manufacturing jobs back, but critics argue that his first term didn’t lead to any significant boom in domestic tech manufacturing. If anything, the uncertainty created by his trade wars led some firms to hedge their bets and shift production to other countries—not back to the U.S., but to Vietnam, India, and Mexico.
There is also a geopolitical risk. Tech tariffs can quickly bleed into broader diplomatic tensions. The U.S.–China relationship is already fragile, and tech is at the center of that strain. Further antagonizing China with aggressive tariff hikes might make cooperation on issues like climate change, global health, or nuclear containment even more difficult. In a world where tech and politics are deeply intertwined, tariff decisions can’t be separated from broader foreign policy consequences.
All of this brings the conversation back to Trump’s basic message: strength through economic force. Tariffs, in his view, are leverage. He sees them as a way to force foreign nations to change their behavior and to pressure domestic companies to come back home. But the tools of economic force don’t always yield clean victories—especially in a sector as complicated and globally dependent as technology.
Here’s the thing folks: At the heart of this issue lies a fundamental question—should the U.S. try to isolate itself from global tech supply chains, or should it work to secure and lead within them? Trump’s plan clearly leans toward the former. It’s a vision of the world where American strength comes from economic self-reliance, even if that means short-term disruption and higher prices. For some, that’s a worthy goal. For others, it’s a risky gamble that could leave the U.S. behind in the global tech race.
With that… the next year will reveal whether voters buy into this vision. Trump’s stance on tariffs—especially on technology—is bound to be one of the most consequential economic debates over the next four years. Whether it’s the right path forward or not, one thing is certain: this isn’t just about taxes on products. It’s about how the United States defines its role in the world of tomorrow’s technology.
When you are just a spectator all you can do is give your opinion.