Tariffs on Chinese Display Technology Could Cut US Military Dependence: Policy Group

Tariffs on key display components could help the U.S. military reduce its growing reliance on China for critical electronics, a policy group has said.

The Silverado Policy Accelerator, chaired by Dmitri Alperovitch, cofounder of cybersecurity company CrowdStrike, made the recommendation in a report published on April 30.

Digital displays are used in smartphones, televisions, computers, and many military systems. At their core are “display cells”—thin, chip-like layers that create the images on screens.

The report urges the Pentagon to examine supply chains more deeply, focusing on these cells rather than only finished display panels. Many screens assembled outside China, such as in Mexico or Thailand, still use Chinese-made cells, according to the report.

China is projected to account for as much as 75 percent of global display production capacity by 2028. Lower costs from Chinese production have already led to factory closures in Japan and Taiwan.

High-end smartphones sold in the United States are still largely supplied with cells from South Korea, but the report warns of rising dependence across other sectors.

Sarah Stewart, CEO of the Silverado Policy Accelerator and a former U.S. trade official, described the risks in strong terms.

“When we started looking at this, what we saw was another dashboard of flashing red emergency lights,” she said. “We’ve seen this before in other sectors. We have really dangerous exposure here on some of these critical components that are powering our military, first responders, power plants, and literally every piece of critical infrastructure.”

Displays provide essential visual information for defense equipment, from cockpit screens to rugged tablets used by troops. Any major disruption in supply could affect U.S. military readiness and critical national infrastructure.

The group suggests that tariffs on Chinese-made display cells could be applied under Section 301, a U.S. law addressing unfair trade practices. This statute offers the executive branch broad flexibility to respond to burdens on U.S. commerce.

Such measures could target cells inside finished products imported from third countries.

Last year, President Donald Trump signed the fiscal year 2026 National Defense Authorization Act. The legislation requires the Pentagon to develop a plan to end reliance on China, Russia, and other adversaries for display technology, with deadlines extending toward 2027 to 2030.

The Silverado report builds on these concerns by highlighting vulnerabilities at the cell production stage, which requires heavy investment and long lead times to establish new facilities.

It notes that while consumer prices for devices have fallen due to increased Chinese capacity, the national security implications of concentrated production deserve attention.

The findings come amid ongoing U.S. efforts to manage trade with China through Section 301 actions, which have previously covered various electronics and technology goods.