How Tariffs on Critical Imports Strengthen National Security

In a recent interview with CNBC, Jamie Dimon, CEO of JPMorgan Chase, addressed the lingering controversy over tariffs enacted during President Trump’s administration by bluntly advising everyone to “get over it.” While Dimon’s remark might seem dismissive, it brings forward a meaningful conversation about tariffs’ enduring impact on national security — especially regarding critical imports. This discussion goes beyond politics and centers on ensuring stability, preparedness, and resilience for any nation in a rapidly shifting global landscape.

1. Defining “Critical Imports”

Critical imports are resources, components, or technologies essential to a nation’s infrastructure, defense, healthcare, and broader economic vitality. Think of rare earth minerals crucial for defense systems, healthcare supplies like personal protective equipment (PPE), or semiconductors powering virtually every modern electronic device. When these goods are predominantly sourced from abroad, any disruption — whether caused by political instability, trade disputes, or global crises — can compromise national security.

2. Tariffs as a Tool for Domestic Readiness

Tariffs are, in essence, taxes on imported goods. When placed on critical imports, they can serve as an incentive for:

1. Domestic Production: Tariffs can encourage manufacturers to invest in local production by making some imported goods more expensive and reducing dependency on foreign suppliers.

2. Supply Chain Diversification: When costs increase, companies may seek alternative partners, spurring a more robust and geographically diverse supply chain.

3. Strategic Reserves and Reshoring: Governments and industries may benefit from stockpiling essential resources or bringing production facilities home to prevent supply shocks.

From a national security standpoint, control—or at least improved oversight—of these assets and products is crucial. Tariffs, though imperfect, are one policy option to incentivize that movement toward domestic and allied production.

3. The Jamie Dimon Perspective: “Get Over It”

Jamie Dimon’s perspective, as reported by CNBC, underscores a practicality: tariffs are likely to remain part of the trade landscape for the foreseeable future. Instead of fighting the reality of tariffs, he suggests companies should adapt their strategies and operations to stay competitive.

However, “getting over it” does not mean ignoring potential downsides or overlooking how tariffs fit into broader strategic objectives. Tariffs can increase consumer costs, sparking retaliatory measures from trade partners and occasionally strain diplomatic relationships. Yet when it comes to critical materials or technologies that directly affect national security, the benefits of partial self-reliance and assured supply often outweigh short-term financial downsides.

4. Balancing Security and Economic Growth

To effectively use tariffs as a safeguard for national security, policymakers and industry leaders must strike a balance:

• Selectivity in Application: Tariffs on all goods can unnecessarily harm economic growth and escalate trade disputes. Focusing on critical imports that truly affect national security and industrial resilience is more prudent.

• Supporting Domestic Investment: Tariffs alone won’t build new factories or infrastructure. Governments can bolster the effects of tariffs by offering incentives, tax breaks, or grants to companies that invest in the domestic production capacity of essential materials.

• Ensuring Global Competitiveness: Even as local production is strengthened, policymakers must ensure that U.S. industries remain competitive internationally. That means fostering innovation, streamlining regulation, and investing in workforce development.

• Multi-Partner Cooperation: The U.S. can cooperate with reliable allies if specific critical resources are more readily available or more efficiently produced abroad. Tariffs can be designed to exclude or lower rates for allied nations, maintaining secure supply chains without fueling unnecessary trade wars.

5. Preparedness in a Volatile World

Recent global events — from pandemics to geopolitical tensions — have highlighted the fragility of supply chains and the risks of over-reliance on distant suppliers for life-saving or defense-related items. While tariffs are not a cure-all, they represent one way a country can shape supply chain decisions and encourage more robust domestic production. In conjunction with other measures — like stockpiling, bilateral trade agreements, and investment in research and development — tariffs can be a calculated part of a national security strategy.

6. Conclusion: Looking Beyond the Politics

Whether you side with Jamie Dimon’s “get over it” approach or have concerns about the broader economic repercussions, tariffs on critical imports undeniably intersect with national security issues. They serve as a policy instrument that can reduce external dependencies, spur domestic innovation, and protect key industries from external shocks.

Ultimately, the conversation about tariffs should transcend partisan lines and focus on a central question: How do we ensure our nation can secure the resources, technologies, and capabilities needed to protect our citizens and remain globally competitive? That is the core of national security — and tariffs on critical imports are one piece of that ever-evolving puzzle.

Dan Izhaky · January 23, 2025 · Originally published on Medium · All writing · Next: A Fond Farewell and a Warm Welcome: Looking Back and Moving Forward