The Trump administration has relied heavily on export controls and tariffs as centerpieces of its economic strategy, but both mechanisms are encountering significant obstacles that have limited their intended impact.
Export controls, managed by the Bureau of Industry and Security, are designed to prevent sensitive American technology from reaching foreign competitors. However, businesses report substantial processing delays that exceed the agency’s stated 90-day standard. An industry survey found that 95 percent of American companies seeking to sell to China face license delays exceeding normal timeframes. These slowdowns have resulted in substantial lost business opportunities, with companies reporting billions of dollars in foregone sales as Chinese competitors capture market share with comparable products.
Experts attribute the export control delays to contradictory policy signals from the Trump administration. After President Trump met with Chinese leader Xi Jinping in South Korea last October, the administration rolled back some controls and permitted semiconductor sales previously restricted. This vacillating approach has created confusion within the licensing agency, with leadership uncertain about policy direction. Personnel turnover has compounded the issue, and current agency management has centralized approval authority, creating bottlenecks in the licensing process.
Tariffs have presented separate challenges. A Supreme Court decision in February invalidated a significant portion of tariffs implemented under the International Emergency Economic Powers Act, ruling the president lacked such authority during peacetime. Remaining tariffs face mounting fraud problems. Importers are employing transshipment schemes to obscure goods’ origins and evade higher tariff rates, costing the federal government an estimated $45 billion to $75 billion annually. Trade data shows a significant discrepancy between Chinese export claims and American import figures, alongside declining average cargo container values that suggest systematic underreporting of shipment worth to minimize tariff obligations.
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