Shaheen Report Details Economic Costs of Trump Administration’s China Policy

WASHINGTON – A fresh report released by U.S. Senator Jeanne Shaheen (D-NH), Ranking Member of the Senate Foreign Relations Committee, and Democratic members of the committee, details how the Trump Administration’s approach to China has imposed growing economic costs on American families whereas strengthening Beijing’s global position. The report comes as President Trump plans to travel to Beijing.

Economic Impact and Trade Wars

The 56-page report, titled “The Price of Retreat 2.0: Undermining America’s Economic Edge and Alliance Advantage,” is based on official staff travel, committee oversight activities, open-source research, and insights from meetings with foreign government officials, American companies, and international non-governmental organizations. The findings indicate that President Trump’s handling of the U.S.-China relationship continues to mount economic costs for American families and has diplomatic consequences worldwide.

According to the report, the Administration’s tariffs and economic policies have increased costs for American households, destabilized global markets, and placed new pressure on U.S. Manufacturers and farmers without producing meaningful changes in Beijing’s behavior. The report highlights that since President Trump’s tariffs, the American economy has lost a net 19,000 jobs MSN.

The decision to allow the sale of cutting-edge semiconductors to China is also cited as a factor that will undermine the United States’ long-term economic edge. The report notes that travel bans, visa policies, and cuts to funding for science have led to worker shortages in critical national security sectors, driving top talent to opportunities abroad.

Diplomatic Consequences and Alliances

The report also criticizes the dismantling of the diplomatic toolkit, noting that more than half of U.S. Embassies overseas are currently without a Senate-confirmed ambassador. Over $14 billion in foreign assistance funds were rescinded in 2025, curtailing U.S. Influence abroad Senate Foreign Relations Committee.

In contrast, China has ambassadors at nearly every diplomatic outpost, fields the world’s largest diplomatic corps, and posted record investments under its Belt and Road Initiative. The report alleges that billions in U.S. Taxpayer dollars were shifted into slush funds, and that waste and fraud were not prevented.

The report further states that the Trump Administration has strained alliances, citing the Greenland crisis and instances where allies were left to fend for themselves in the face of Chinese coercion. Discussions with President Xi Jinping regarding U.S. Arms sales to Taiwan were also criticized as violating American commitments.

Recommendations for Congress

The report includes several recommendations for Congress, including:

• Enacting legislation to ban the sale of cutting-edge AI chips to foreign adversaries and impose restrictions on less advanced semiconductors.
• Enacting legislation to facilitate the sale of American technology to trusted partners.
• Reasserting Congress’s role in trade policy and ending the damaging trade wars.
• Passing the SECURE Minerals Act and the Critical Minerals Partnership Act.
• Conveying unwavering support for enhancing deterrence in the Taiwan Strait.
• Codifying security guarantees for Ukraine in a post-war environment.
• Enacting the SHADOW Fleet Sanctions Act of 2026 to limit Russia’s revenue.
• Holding the Administration accountable for fully implementing the Fiscal Year 2026 State and Foreign Operations Appropriations bill.
• Pursuing robust oversight of foreign assistance spending.
• Enacting the Saving Lives and Taxpayer Dollars Act to prevent waste of foreign assistance commodities.
• Prioritizing the nomination of qualified career experts for Ambassador positions.
• Enacting legislation to limit unilateral executive authority over travel bans and visa requirements.

The full report and its Executive Summary are available here.