Free Trial

Senate Democrats say Trump's policies are hurting America’s ability to compete with China

Sen. Jeanne Shaheen, D-N.H., speaks during the McIntyre-Shaheen 100 Club Dinner, April 27, 2025, in Manchester, N.H. (AP Photo/Reba Saldanha, File)

Key Points

  • The Senate Foreign Relations Committee report says President Trump’s foreign aid cuts, tariffs on allies and restrictions on international students have “deeply” undermined America’s ability to compete with China.
  • Democrats warn that cuts to USAID and the U.S. Agency for Global Media have weakened U.S. soft power—U.S. broadcasters lost 54 radio frequencies even as Chinese state media added 80 worldwide.
  • The administration’s blanket tariffs on the EU, Mexico, Canada and Japan are eroding longstanding alliances and making it harder for NATO partners to meet defense-spending goals.
  • Proposed cuts to scientific research funding and limits on foreign students risk a brain drain that China is poised to exploit.
  • MarketBeat previews the top five stocks to own by August 1st.

WASHINGTON (AP) — President Donald Trump's foreign aid cuts, tariffs on allies and restrictions on international students have “deeply” undermined America's ability to compete with China, Senate Democrats say.

In a report released Monday, Democrats on the Senate Foreign Relations Committee called for congressional action toward restoring the country's global reputation and influence to ensure the U.S. will not be unseated by China as the world's leading power.

“America’s retreat from the world will have real and lasting consequences for the American people,” the report says. "And a retreat from the system that we helped build following the Second World War — based on democracy, economic interdependence and American values — means China is increasingly able to set the global agenda at the expense of U.S. interests.”

The report comes about six months after Trump returned to the White House and began taking drastic measures that his administration says will improve government efficiency and protect U.S. interests, triggering condemnation from Democrats that the moves could amount to ceding global influence to China.

White House spokeswoman Anna Kelly said the U.S. is strong again under Trump and that his foreign policy is effective “because of his willingness to look anyone in the eye to get better deals for the American people."

“His strategy is paying off, as evidenced by the recent trade deal that created a path towards open market access for Americans and China’s actions to control the spread of deadly fentanyl,” she said.

In the report, the Democrats criticized the Trump administration's gutting of the U.S. Agency for International Development, which was a key way of distributing foreign assistance, and the U.S. Agency for Global Media — both tools to extend U.S. soft power and counter Beijing's influence.

While Trump's cuts to USAGM, whose outlets deliver uncensored information to parts of the world under authoritarian rule and often without a free press of their own, has resulted in the loss of 54 frequencies by Radio Free Asia and millions of users. Chinese state-run media outlets have added 80 new radio frequencies and multiple languages to their programming, the report said.

The administration's cuts to foreign aid programs also has allowed China to surpass the U.S. as the largest bilateral assistance partner for more than 40 countries, according to the report.

“China is building influence, expanding relationships and reshaping the global order to its advantage,” said Sen. Jeanne Shaheen, the ranking Democrat on the Senate Foreign Relations Committee.

In a call with reporters, Shaheen said some Republicans, while unwilling to join the Democrats in the report, share the same concerns over the threat posed by Beijing.

The office of committee Chairman Jim Risch, R-Idaho, declined to comment.

The report criticized Trump's tariffs on allies and partners including the European Union, Mexico, Canada and Japan.

“Blanket tariffs are not just wreaking economic havoc at home, they are also eroding longstanding U.S. alliances, including making it even more difficult to increase defense spending to 5%" of gross domestic product, the report said. That's the new goal agreed to by NATO allies.

The administration's proposals to cut funding for scientific research and crack down on top U.S. universities and foreign students could lead to a brain drain, the report warned, noting China is jumping at the opportunity to lure talent.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

(Almost)  Everything You Need To Know About The EV Market Cover

Looking to profit from the electric vehicle mega-trend? Enter your email address and we'll send you our list of which EV stocks show the most long-term potential.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Watch Before Monday: Stocks to Load Up on Before Earnings
3 Hot Growth Stocks to Watch Right Now!
Don’t Miss These Top 3 Defense Stocks Set To Gain

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines