Tariffs are Not Enough - Consider Sanctions
We are already a Nation at War
China poses a significant threat to the U.S. and its companies through economic sanctions and market restrictions.
China's recent sanctions, effective since December 2024 and updated April 4th 2025, were in response to U.S. arms sales to Taiwan and President Trump’s tariffs on China, by freezing assets and barring business in China, .
The evidence suggests that tariffs are insufficient. Calls for sanctions to address broader issues like intellectual property theft and national security are necessary.
Fentanyl-related deaths, linked to China via precursor chemicals, exceed 74,000 annually, and is a major public health crisis impacting American lives, particularly those men of fighting age.
Recent Sanctions & Broader U.S.-China Economic Tensions
China's sanctions on U.S. Defense related companies that visited Taiwan in September 2024, was announced on December 5, 2024, targeted these companies for its role in U.S. defense, particularly arms sales to Taiwan. These measures sought to freeze U.S. Company’s assets in China (of which there are none) and prohibit Chinese entities from dealing with these firms (for which there were none), reflecting escalating tensions over Taiwan's sovereignty. This action is part of a broader pattern of retaliatory measures against U.S. defense contractors.
The U.S. and China have engaged in a tit-for-tat escalation of tariffs and sanctions, with recent U.S. actions targeting Chinese firms in semiconductors and military technology. Tariffs are not enough and highlight the need for targeted sanctions to address deeper issues like cyber threats, shipbuilding subsidies, and intellectual property theft, which have persisted for over a decade.
The Fentanyl Crisis and China's Role
Fentanyl-related deaths in the U.S., with over 74,000 cases in 2023, are a significant public health issue, linked to China's supply of precursor chemicals and an open border. This crisis, killing more Americans annually than the total U.S. casualties in the Vietnam War (58,220), underscores the need for stronger measures against Chinese entities involved in the drug trade.
Age-adjusted drug overdose death rate, by sex: United States, 2003–2023 according to the CDC
China's actions pose multifaceted threats to American companies, particularly those in the defense and technology sectors, such as Synexxus Inc., a service-disabled veteran-owned small business specializing in electronics design and manufacturing for defense markets. The President should explore sanctions, much as he accomplished during his first presidency, in a broader economic and security context, including the critical issue of fentanyl-related deaths, to provide a singular comprehensive overview of the challenges faced by U.S. firms and the nation by the PRC.
Recent Sanctions on U.S. Companies
On December 5, 2024, which were reinforced on April 4th, 2025, China imposed sanctions on 13 U.S. military firms, including Synexxus Inc, in response to U.S. arms sales to Taiwan, which China views as a violation of its sovereignty and territorial integrity (China slaps sanctions on 13 US military firms over Taiwan arms sale). These sanctions, effective immediately, froze movable and immovable properties, and other assets of these companies within China, and prohibit Chinese organizations and individuals from cooperating with them. The list of sanctioned firms includes Teledyne Brown Engineering Inc., BRINC Drones Inc., Rapid Flight LLC, Red Six Solutions, Shield AI Inc., Firestorm Labs Inc., Kratos Unmanned Aerial Systems Inc., HavocAI, Neros Technologies, Cyberlux Corporation, Domo Tactical Communications, and Group W, alongside Synexxus (China sanctions 13 US firms, 6 executives over Taiwan arms sales). Additionally, China barred entry to six executives from firms like Raytheon, BAE Systems and Synexxus, further escalating tensions.
Synexxus, founded in 2006, is known for its CMMI Level 3 certified systems, including data distribution and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) technologies, primarily serving U.S. government and allied international defense markets (SYNEXXUS Inc). While the immediate impact on Synexxus is be limited due to its focus on U.S. and allied markets, with no imports from or engagement with China or Chinese entities, the sanctions symbolize China's willingness to target even smaller American firms in its economic warfare strategy, potentially affecting future global business opportunities.
Broader U.S.-China Economic and Security Tensions
The sanctions on these companies are part of a long-standing pattern of economic and security attacks by China. The U.S. has imposed its own sanctions on Chinese entities, such as in October 2024 against Xiamen Limbach Aircraft Engine Co. and Redlepus Vector Industry for producing drones for Russia, and in March 2023, adding 28 Chinese firms to the Entity List for acquiring American technology in support of the People's Liberation Army (PLA) ([United States sanctions against China. These measures are insufficient to curb China's military and technological advancements, particularly in semiconductors, shipbuilding, and advanced computing, with controls implemented by the Bureau of Industry and Security in October 2022.
China's retaliatory actions, such as sanctioning 28 U.S. companies in January 2025 for defense-related activities and targeting American chipmakers and retailers, indicate a widening scope of economic coercion. This tit-for-tat escalation suggests that tariffs, while a significant tool, are not sufficient to address the depth of the PRC’s threat. Simply put, "tariffs are not enough", which aligns with calls for more targeted sanctions, which can directly restrict access to critical markets or technologies, addressing issues like cyber threats and intellectual property theft that have been ongoing for over a decade. For instance, in March 2025, the U.S. Treasury sanctioned Zhou Shuai and his company, Shanghai Heiying Information Technology, for hacking U.S. critical infrastructure networks, highlighting China's role in malicious cyber activities (Treasury Sanctions China-based Hacker Involved in the Compromise of Sensitive U.S. Victim Networks | U.S. Department of the Treasury).
The Fentanyl Crisis: A Public Health Threat Linked to China
Fentanyl poisoning adds another dimension to China's threat, described as "more detrimental and devastating than combat." In 2023, provisional data from the CDC's National Center for Health Statistics indicate there were an estimated 107,543 drug overdose deaths in the U.S., with 81,083 involving opioids, and specifically, synthetic opioids (primarily fentanyl) accounting for 74,792 deaths, a slight decrease from 75,679 in 2022 (U.S. Overdose Deaths Decrease in 2023). This figure is significant when compared to U.S. military casualties in the Vietnam War, which totaled 58,220 over 20 years (1956-1975), with peak annual deaths reaching 16,899 in 1968, underscores the scale of the crisis, with annual fentanyl deaths exceeding total Vietnam War losses.
China's role in this crisis is well-documented, with much of the illicit fentanyl in the U.S. originating from precursors supplied by Chinese chemical companies to Mexican cartels, who then produce and traffic the drug across the U.S.-Mexico border (Are fentanyl overdose deaths rising in the US? | USAFacts). This has led to U.S. sanctions on Chinese companies and individuals involved in supplying precursor chemicals, such as in April 2023, when the Office of Foreign Assets Control (OFAC) sanctioned two companies and four individuals pursuant to Executive Order 14059 ([United States sanctions against China - Wikipedia](https://en.wikipedia.org/wiki/United States_sanctions_against_China)). The call for stronger sanctions reflects the urgency of addressing this public health emergency, which kills tens of thousands of Americans annually, particularly fighting-aged men, and is seen as a form of "war without firing a shot."
Economic Sanctions vs. Fentanyl Impact
To illustrate the dual threats, consider the following table comparing the impact of China's actions on U.S. companies and public health:
This table highlights the interconnected nature of economic and security threats, with sanctions on companies like Synexxus mirroring the broader struggle over global influence, while the fentanyl crisis represents a direct assault on American lives within our own borders.
Implications
China's threat to American companies is not isolated but part of a larger geopolitical and economic conflict, exacerbated by retaliatory sanctions and the fentanyl crisis. The perspective that "we are a nation at war without firing a shot" captures the insidious nature of these challenges, where economic coercion and public health crises combine to undermine U.S. interests. While tariffs are a starting point, the evidence suggests that targeted sanctions, particularly against Chinese entities involved in military technology and drug trafficking, are crucial to mitigate these threats. For American companies, navigating this hostile environment requires resilience, while for the nation, addressing the fentanyl crisis demands international cooperation and stronger enforcement against China's role in the global drug trade.