Trump is pushing a vision to sideline China from global trade entirely. That’s the world Steven Miran, a key architect of Trumponomics, has outlined.
The plan centers on making production in the U.S. cheaper to bring manufacturing back, while deliberately excluding China.
Trump’s Strategy to Exclude China from Global Trade
Trump has a clear plan to push China out of international trade networks.
Steven Miran, a leading figure behind Trumponomics, has laid out a vision where the U.S. ramps up domestic production while sidelining China entirely.
The approach hinges on making manufacturing in America cost-competitive to bring industries back home.
Core Pillars of Trumponomics and Defense Spending
At the heart of this strategy whether it’s boosting manufacturing, meeting domestic demand, or setting tariffs is defense spending.
Miran sees defense as the cornerstone, driving demand for U.S. made goods and securing national interests.
Though Trump’s moves can seem scattered, the big picture is consistent: impose tariffs, increase defense budgets, and strategically target China to reshape global trade dynamics.
Insights from Steven Miran’s Reindustrialization Report
A summary of Miran’s Manhattan Institute report highlights the flaws in current U.S. reindustrialization efforts.
Policies like the CHIPS Act, Infrastructure Investment and Jobs Act, and Inflation Reduction Act pour subsidies into sectors with weak market demand, like electric vehicles, while piling on regulations that raise costs.
This creates a fragile industrial base that could collapse without constant government support, risking another round of deindustrialization.
A Stronger Path to U.S. Manufacturing Revival
Miran proposes a more sustainable approach to bring manufacturing back.
He calls for supply-side reforms cutting environmental, labor, and land regulations to make U.S. production cheaper. Investing in STEM education would ensure a skilled workforce to fuel innovation.
Most critically, defense-driven procurement, which makes up nearly 60% of federal spending, could anchor demand for American-made products, with stricter rules to prioritize U.S. goods over time.
Why Tariffs Target China Specifically
Tariffs are central to decoupling from China.
By making Chinese inputs more expensive, the U.S. can accelerate a shift away from reliance on Chinese supply chains.
Miran argues for clear, long-term tariff policies to give businesses predictability, encouraging them to relocate production to the U.S. or allied nations.
This isn’t just about economics it’s about reducing strategic vulnerabilities tied to China’s role in critical sectors.
Defense R&D as a Catalyst for Innovation
Scaling up defense research and development is another key piece.
Miran notes that current spending lags behind 1980s levels relative to the economy’s size.
Boosting it could drive breakthroughs, as seen with past innovations like GPS or the internet, which started as defense projects.
Increased R&D would not only strengthen security but also spark growth in civilian industries, creating jobs and advancing technology.
Building a Self-Sustaining U.S. Industrial Base
The ultimate goal is a U.S. industrial base that thrives without subsidies.
By slashing red tape, reforming taxes, and leveraging defense-led demand, Miran envisions America as the top destination for production.
This approach counters China’s economic influence while ensuring long-term competitiveness, making the U.S. resilient against global trade disruptions.