Reducing Dependency on China: A Push for Tariffs on Digital Display Parts

In a bid to safeguard national security, a policy group chaired by Dmitri Alperovitch recommends imposing tariffs on digital display components to reduce U.S. military dependence on China. The report highlights the risk of China's growing control over the market, a trend previously dominated by U.S. allies like Japan and Korea.

The warning comes after President Donald Trump signed legislation mandating the Pentagon to devise a plan by 2027 to eliminate reliance on adversaries like China and Russia for crucial technology. The report by Silverado Policy Accelerator urges a thorough investigation into the supply chain for display 'cells,' vital components in electronics like smartphones and TVs, which heavily depend on cheaper Chinese manufacturing.

While domestic assembly occurs in countries such as Mexico, the underlying Chinese-made cells pose a significant threat, with projections that China's market dominance could reach 75% by 2028. The report suggests these display cells be included in a 'Section 301' investigation to impose targeted tariffs under unfair trade practices, ensuring U.S. commerce is less burdened by foreign dependencies.

(With inputs from agencies.)