MW Trump should aim for zero tariffs. It could usher in a golden age for Americans.

By Gary Shapiro

How 'tariff zero' would expand opportunities for American exporters and help U.S. companies sell to the world

Trade, when done right, is an economic, diplomatic and strategic tool.

China is the latest, and largest, U.S. trading partner coming to the trade negotiating table as a result of the Trump administration's tariffs. It won't be the last.

The U.S.-China trade truce announced on Monday comes after a deal with the United Kingdom last week. That deal will increase market access for U.S. exports in exchange for lower U.S. tariffs on British steel, aluminum and cars. It's an imperfect arrangement that does not address the digital taxes choking American companies, but it's a good first step.

This follows moves in April by Israel to unilaterally cancel all tariffs on goods imported from the United States, as well as a proposal from India for zero-for-zero tariffs on a list of goods including steel and auto components, part of discussions that have revived prospects for a bilateral trade deal. More such deals are rumored to be in the works. Tesla $(TSLA)$ CEO Elon Musk has called for a "zero tariff situation" between Europe and the United States.

The current economic chaos creates a window of opportunity for the Trump administration. In negotiating with trade partners, the United States can and should push for a freer, fairer global trading system that benefits all Americans, at the same time recognizing that free trade makes everyone better off. Going to "tariff zero" - or even greatly lowering tariffs and trade barriers with America's allies - could usher in a golden age for the U.S. economy.

More than six out of every 10 Americans say the cost of living in the U.S. is on the wrong track, and a similar number feel the same about inflation. Tariff zero could help with affordability in the short term and unleash a wave of innovation in fields such as artificial intelligence, machine learning and quantum computing to fight inflation and deliver more features at lower cost.

Not everything can be made in America, and not everything should be. Not only does the U.S. lack the labor force and manufacturing know-how, but research from the Consumer Technology Association shows that reshoring manufacturing of all the tech products the U.S. imports from China - never mind other manufacturing hubs - would require a direct business investment of well over $500 billion.

Going to tariff zero would expand opportunities for American exporters and help U.S. companies sell to the world. American businesses often face major challenges to competing abroad as other countries promote national champions and block American companies. India, for example, has an average applied tariff rate around 17%, while the U.S. average is 3.3%. India and other large emerging markets including Bangladesh, Nigeria and Pakistan have not yet committed to maximum tariff rates on many products, leaving them significant room to restrict U.S. exports.

If tariffs are a negotiating tool, then eliminating nontariff barriers to trade that harm U.S. exports of goods and services would be a major win. The European Union's Digital Markets Act and similar laws in countries including South Korea erect barriers that unfairly block American businesses and create an uneven playing field.

Moreover, Indonesia and others have threatened to impose tariffs on digital products and cross-border data flows - a stake in the heart of some of America's top technology companies. Too often, American companies are penalized for playing fair while other countries game the system, and the U.S. should use this moment of leverage to benefit its innovators.

At the same time, "success" isn't just about trade balances. Since World War II, the U.S. has built up alliances and friendships that allow it to exert influence around the globe. Tariffs imposed harshly, suddenly and without justification on allies and adversaries alike are destroying trust in U.S. leadership and the goodwill of its longtime friends. Destroying these relationships that make the U.S. stronger and better won't deliver economic prosperity. Trade, when done right, is an economic, diplomatic and strategic tool.

U.S. trade agencies - the Office of the U.S. Trade Representative with Section 301 tariffs, the Department of Commerce with Section 232 tariffs, and the Department of Homeland Security with IEEPA tariffs - must be strategic. One approach is to push U.S. trading partners to commit to removing the tariffs and trade barriers that keep American goods out of their markets. Another would negotiate more targeted and durable agreements with one or more countries on specific sectors such as technology.

Either way, the U.S. approach should be strategic and smart - or trading partners will broker deals with one another that could leave the U.S. behind. Investing in a "team approach" to trade with treaty allies and trade partners including Canada, France, Germany, South Korea, Japan, India, Mexico, the United Kingdom, Vietnam and more could help the U.S. shore up relationships, diversify supply chains and tap into existing production capabilities.

If the Trump administration uses tariffs as a tool to get reach tariff zero, it will be a historic achievement. The U.S. could see barriers come down, markets open up and innovation thrive. It's a bold move - with a good chance of paying off.

Gary Shapiro is the chief executive and vice chair of the Consumer Technology Association, a trade association representing the U.S. technology industry.

Plus: The stock market is really going to love those U.S. tariffs on China

More: The stock market is cheering the U.S.-China trade deal, but the tariff damage is done

-Gary Shapiro

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May 13, 2025 12:22 ET (16:22 GMT)

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