WASHINGTON – Today, U.S. Senator Jeanne Shaheen (D-NH), Ranking Member of the Senate Foreign Relations Committee, and Democratic members of the Senate Foreign Relations Committee launched a brand new report analyzing how the Trump Administration’s method to China has imposed rising financial prices on American households whereas strengthening Beijing’s world place. The report comes as President Trump plans to journey to Beijing on the finish of this month, whereas in a considerably weaker place due to his actions over the past 12 months.
The 56-page report, titled “The Price of Retreat 2.0: Undermining America’s Economic Edge and Alliance Advantage,” relies on official employees journey, committee oversight actions, open-source analysis and insights from conferences with overseas authorities officers, American firms and worldwide non-governmental organizations. The findings are stark. The financial prices of President Trump’s dealing with of the U.S-China relationship proceed to mount for American households, and the diplomatic penalties are seen throughout each area of the world. Beijing has moved aggressively to take advantage of America’s retreat. As the report outlines, the Administration’s tariffs and financial insurance policies have elevated prices for American households, destabilized world markets and positioned new strain on U.S. producers and farmers whereas failing to provide significant modifications in Beijing’s habits.
“This report makes clear that the consequences of the Trump Administration’s global retreat that we warned about last year are no longer theoretical—they are being felt by American families and businesses every day,” mentioned Ranking Member Shaheen. “The Administration’s trade wars, cuts to innovation and weakening of our alliances are not strengthening America’s position against China, they are undermining it. At a moment when the United States should be reinforcing our economic leadership and global partnerships, these policies are giving Beijing an opening to expand its influence. As President Trump heads into his meetings with President Xi later this month, his own policies have profoundly diminished America’s competitive advantage against China. The President will have a weak hand to play in Beijing, and it is the American people who will pay the price.”
The report highlights key areas the place America’s aggressive benefit has suffered:
- Hurting America’s Economy and Undermining the U.S.’s Innovation Ecosystem: The Administration’s fluctuating tariffs have devastated America’s small companies, forcing layoffs of 120,000 employees in November 2025, the most important month-to-month complete in 5 years. Since President Trump’s so-called ‘Liberation Day’ tariffs, the American financial system has misplaced a web 19,000 jobs. President Trump’s determination to permit the sale of cutting-edge semiconductors to China will undermine the United States’ long-term financial edge. The Administration’s journey bans, visa insurance policies and cuts to funding for science have pressured employee shortages in crucial nationwide safety sectors—notably within the cyber, microelectronics, and precision mechanics sectors, amongst others—and have pushed prime expertise to well-funded analysis packages and scholarship alternatives at universities exterior the United States. Meanwhile, China is increasing visa classes and enterprise alternatives for worldwide professionals in science, expertise, engineering and math (STEM), and Chinese universities have now surpassed U.S. counterparts in scientific output.
- Dismantling the Diplomatic Toolkit: More than half of U.S. embassies abroad are at present and not using a Senate-confirmed ambassador. In 2025, the Administration additionally rescinded over $14 billion in overseas help funds, considerably curbing U.S. affect overseas with drastic human penalties. In distinction, China has ambassadors at practically each diplomatic outpost, fields the world’s largest diplomatic corps and posted file investments in 2025 below its Belt and Road Initiative. Billions in U.S. taxpayer {dollars} have been shifted into slush funds as positions tasked with stopping waste and fraud have been dismantled. Under Secretary Rubio’s management, the United States has wasted, somewhat than saved, taxpayers’ {dollars} and permitted the expiration and destruction of lifesaving meals and medical commodities.
- Upending Strategic Partnerships and Alliances: The Trump Administration has needlessly pushed alliances to the brink of rupture and broken partnerships constructed on a bipartisan foundation over many years. For instance, following the Greenland disaster the vast majority of individuals within the Kingdom of Denmark, who as soon as supported the U.S.-Denmark Alliance, now think about the United States to be an adversary. Japan was left to fend for itself within the face of aggressive Chinese coercion when Tokyo stood up for its safety pursuits within the Taiwan strait. President Trump mentioned U.S. arms gross sales to Taiwan with Xi Jinping – violating American commitments to a democratic companion and expertise powerhouse in place for the reason that Reagan Administration. The President has additionally brazenly accommodated Russia’s illegitimate territorial claims in Ukraine whereas imposing restricted extra strain on Moscow to barter an finish to the battle. These collective actions sign weak point to Xi Jinping as he and his lieutenants ponder motion in opposition to Taiwan that would trigger a $10 trillion disruption within the world financial system. Instead of making a united entrance in opposition to Beijing, we’re forcing our closest mates to fend for themselves, or worse, work with our chief competitor. While the Administration has slashed funding to UN companies and withdrawn the United States from over 60 worldwide organizations, China has coerced U.S. allies with impunity and offered itself because the defender of accountable and regular conduct on the world stage. And because the Trump Administration withdrew the United States from worldwide organizations designed to facilitate commerce in crucial minerals, China secured the position of host of the 2027 World Radio Conference, which is able to revise essential worldwide telecommunications tips.
The report’s suggestions embody:
- Congress ought to enact laws that bans the sale of cutting-edge AI chips to overseas adversaries and imposes stringent restrictions on much less superior but nonetheless highly effective semiconductors.
- Congress ought to enact laws that makes it simpler to promote American expertise to trusted companions below the best circumstances.
- Congress should reassert its position in commerce coverage and put a cease to the Trump Administration’s damaging commerce wars.
- Congress ought to cross the bipartisan SECURE Minerals Act and the Critical Minerals Partnership Act.
- The Administration and Congress ought to collectively convey unwavering help for enhancing deterrence within the Taiwan Strait.
- Congress ought to show lasting help for Ukraine by codifying safety ensures for a post-war atmosphere.
- Congress ought to enact the bipartisan SHADOW Fleet Sanctions Act of 2026, led by Chairman Jim Risch and Ranking Member Jeanne Shaheen, to restrict Russia’s income to help its battle in opposition to Ukraine.
- Congress should maintain the Administration accountable to completely implement the Fiscal Year 2026 State and Foreign Operations Appropriations invoice.
- Congress should pursue sturdy oversight of overseas help spending.
- Congress should enact the bipartisan, bicameral Saving Lives and Taxpayer Dollars Act to require the Administration to forestall U.S. taxpayer funded overseas help commodities from spoiling, expiring or being destroyed.
- The Administration should prioritize nominating certified profession specialists for Ambassador and different diplomatic positions and chorus from politicizing profession diplomatic employees, to make sure American diplomats are confirmed and deployed quickly to posts all over the world.
- Congress ought to enact laws that limits unilateral govt authority to concern journey bans or modify visa charges and necessities.
The full report is out there HERE.
The Executive Summary is out there HERE.
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