As markets brace for a second Trump administration, tariffs have re-emerged as the latest buzzword used to stoke fear and dissuade Americans from embracing his economic policies before they’ve even been implemented. However, what major media outlets fail to do is provide the public with the complete picture, inclusive of historical context, as to how tariffs can be effectively used to safeguard the United States’ status as the world’s leading economic and military superpower. This is a strategy Donald Trump clearly understands and prioritizes.
Tariffs are essential to national security because they strengthen America’s industrial base.
During his first term, President Trump’s focus on tariffs, arguing that they protect jobs, foster innovation, and address unfair trade practices, reignited a national debate about their effectiveness. While critics decry tariffs as protectionist, history shows that they have played a pivotal role in America’s rise and are indispensable for safeguarding its future. (READ MORE: Lessons From a Previous Trade War)
The United States rose to economic superpower status during the Industrial Revolution by safeguarding domestic industries, promoting innovation, and leveraging its vast resources. Tariffs were central to this strategy, protecting American manufacturers from foreign competition and enabling emerging industries like steel and textiles to flourish. Through the 19th and early 20th centuries, tariffs drove industrial expansion and infrastructure development, creating the foundation for economic dominance and military strength.
By World War II, the manufacturing base created through decades of tariff-supported policies enabled the U.S. to become the “Arsenal of Democracy,” supplying critical military equipment not only for us, but for our allies as well. Tariffs ensured America could rely on our own production capacity during times of crisis, fostering economic self-reliance — a lesson that remains relevant today as the U.S. faces international competition.
In today’s globalized economy, tariffs remain a vital tool for addressing key challenges and maintaining America’s leadership. They encourage companies to invest in American industries by leveling the playing field against foreign competitors who benefit from subsidies, cheap labor, or lax regulations. By revitalizing domestic manufacturing, tariffs create jobs, strengthen supply chains, and restore the economic vitality of industrial regions. They also help reduce trade deficits, particularly with countries like China, by curbing cheap imports and promoting exports, which in turn bolsters national wealth and economic stability.
Tariffs are essential to national security because they strengthen America’s industrial base, which is critical for producing vital materials like semiconductors, defense equipment, and pharmaceuticals. Dependence on foreign suppliers for these goods leaves the nation vulnerable during times of geopolitical tension or conflict — a risk underscored by the global supply chain disruptions during the COVID-19 pandemic.
Economic strength and military power are deeply interconnected, and tariffs help fortify this relationship. The production of advanced weaponry and defense materials relies on domestic manufacturing capabilities that cannot be outsourced to foreign powers. Meanwhile, maintaining the world’s most powerful military requires significant financial resources. Tariffs support this by fostering domestic production, creating jobs, and generating the revenue necessary to sustain military investments.
Beyond bolstering national security, tariffs incentivize the onshoring of critical industries, ensuring the United States can meet its own needs in times of crisis. They also provide a protective framework for emerging sectors like renewable energy and advanced manufacturing, giving these industries the room to innovate and compete globally. By reinforcing critical supply chains and supporting domestic production, tariffs enhance economic resilience and give the U.S. greater leverage in global negotiations, solidifying its leadership on the world stage.
While tariffs are not a cure-all, their strategic use can protect American industries, realign trade relationships, and enhance long-term economic security. During his first term, Trump’s use of tariffs countered unfair trade practices and intellectual property theft, particularly by China, and forced trading partners to negotiate more equitable agreements. His use of tariffs as leverage reshaped trade relationships, such as renegotiating NAFTA into the USMCA, a strategy he has already indicated he will lean into once again during his second term.
Critics of a tariff-based economic strategy often point to the potential for rising costs, particularly in our current era of persistent inflation. While it’s true that some goods may become more expensive — especially those from foreign entities that flood the U.S. market with cheap, low-quality products — short-term sacrifices are sometimes necessary to achieve long-term prosperity. The United States rose to global prominence by fostering self-reliance, protecting its industrial base, and leveraging its economic strength, with tariffs playing a central role in that success. (READ MORE: The Time Is Definitely Right for Trump’s Reciprocal Zero-for-Zero Tariff Plan)
To maintain its status as the world’s leading economic and military power, the U.S. must continue to adopt policies that prioritize domestic production and innovation. Today, tariffs remain a crucial tool for addressing the challenges of globalization, revitalizing domestic manufacturing, and securing America’s future. This strategy is not outdated, but rather a time-tested method for safeguarding America’s position in an increasingly competitive global economy. By employing tariffs strategically, the United States can solidify its economic dominance and military strength for generations to come.
Seth Denson is Business & Market Analyst, entrepreneur, author, and national media contributor. Co-Founder of the consulting firm GDP Advisors, today he serves as an Executive at one of the largest brokerage and financial services firms in the world, Acrisure.
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