Politico Reports Trump's Tariffs Threaten U.S. Defense Industry

Politico reported that tariffs imposed by President Donald Trump could jeopardize the American defense industry.

"President Trump's tariffs undermine not only the economy but also security. If his program is implemented as planned, it could disrupt global supply chains, which the Pentagon has spent decades building, and make American weapons more expensive," the publication states.

According to various diplomats, lawmakers, officials, and defense industry analysts, America's approach of going it alone may compel skeptical allies to seek cooperation elsewhere. This shift, in particular, could negatively impact the U.S. defense sector, which has supplied much of the world with weapons.

"Trump calls his tariff plan a transformative step toward leveling the trade playing field and reclaiming lost revenue. But he risks undermining his other promises to turn the U.S. into an industrial power," Politico notes.

"There will be supply shortages, retaliatory actions, and our allies and other partners will strike back," warns Bill Greenwalt, a former Pentagon procurement official. "Some potentially vital supplies will either cost much more than they did or may simply not be available."

The report indicates that tariffs—ranging from 20% on imports from the European Union to 10% on goods from the UK and Australia—could also undermine defense collaboration between the U.S. and other nations. Joint projects with Norway and Israel in missile defense, as well as programs related to the F-35 fighter jet, may be affected.

Additionally, the initiative involving Australia, the UK, and the U.S. to build nuclear submarines and share technology could also be at risk if component prices become prohibitively high.

The publication further notes that the U.S. administration hopes to create more domestic jobs by manufacturing foreign weapon components in the U.S., but companies may struggle to find workers to fill these positions. This is compounded by the defense industry's long-standing competition for employees due to the lure of higher salaries and job security in other manufacturing and service sectors.

"In the aerospace and defense sector, there simply aren't enough people to meet current demands," stated Dak Hardwick, vice president of international relations for the Aerospace Industries Association, during a meeting of American and European defense industry leaders.

Experts also highlight that the complexity of defense manufacturing may lead to multiple layers of tariffs. Senator Mark Kelly (D-Arizona) explained that the global supply chain is so intricate that some defense items cross borders multiple times during assembly, incurring increasing tariffs each time. "Prices will rise, and the costs that the Department of Defense will have to pay will increase," he said.