The Dispatch
Tariff Fall Out: US Research Under Strain
New tariffs, coupled with funding cuts, are significantly increasing costs for US academic research, potentially jeopardising America's global scientific leadership.
By Seb Murray
“While proponents argue tariffs protect US national security and domestic manufacturing, critics warn they pose substantial, often overlooked risks to American universities, putting additional pressure on research budgets and potentially affecting the country’s long-held lead in global science."
“These immediate financial impacts highlight a challenging reality: tariffs aimed at boosting domestic manufacturing may inadvertently weaken America’s scientific innovation."
When Donald Trump’s administration announced expansive new tariffs in early April, academic researchers found themselves unexpectedly on the frontline of a brewing economic storm.
These levies impacted essential laboratory supplies and sophisticated scientific instruments — ranging from microscopes and diagnostic chemicals to DNA sequencers, sharply raising costs.
Suppliers have already begun passing on immediate cost hikes of around 20 percent, adding pressure to research budgets already affected by federal funding reductions during Trump’s second term beginning January.
Although the tariffs have now been temporarily paused for 90 days, this short window offers universities a window to reassess and prepare for the potential long-term financial consequences.
While proponents argue tariffs protect US national security and domestic manufacturing, critics warn they pose substantial, often overlooked risks to American universities, putting additional pressure on research budgets and potentially affecting the country’s long-held lead in global science.
Squeezed Research Budgets
Trump’s latest tariffs represent a big financial shock for academic research institutions, increasing costs for essential laboratory items sourced from key global trading partners.
According to detailed tariff schedules, goods imported from China, a major supplier of scientific equipment and components, now face levies of up to 145 percent. Huge tariffs also target imports from Germany (20 percent), Japan (24 percent), Switzerland (31 percent) and the UK (10 percent), alongside additional duties on equipment from Canada and Mexico, with some exemptions.
These sharp increases are raising costs for items such as microscopes and diagnostic chemicals, components necessary for scientific research.
Even domestically-produced scientific instruments are affected, due to their reliance on imported components, from precision lenses made in Germany to electronic circuits manufactured in Japan.
“We’re already doing quotes today that are 20 percent more than they were yesterday,” Drew Kevorkian, Chief Executive of US-based research equipment supplier ARES Scientific, told Nature. “I think almost everybody is going to see a price increase of some sort.”
At universities across the country, research administrators and purchasing departments are working to manage these unexpected expenses.
“Departments may soon see cost increases on products commonly used on campus as a result of the incoming administration’s proposed tariffs on goods coming from Mexico, Canada and China,” the University of California, Davis, told its staff.
These immediate financial impacts highlight a challenging reality: tariffs aimed at boosting domestic manufacturing may inadvertently weaken America’s scientific innovation.
The world’s largest economy has historically maintained a competitive edge, underpinned by huge investments in research and development, a robust network of elite universities and a strong record of pioneering scientific breakthroughs.
However, that edge is increasingly challenged by China, whose recent investments and scientific output have markedly grown.
Research Funding Woes
Research institutions across the country were already reeling from the prospect of deep federal funding cuts that have been proposed, but not yet enacted, during Trump’s second term. These latest tariffs further complicate their financial outlook.
His administration has proposed cuts to the budget of the National Institutes of Health (NIH), aiming to reduce its annual funding by about 40 percent — from $48 billion to $27 billion. This has sparked concern within the scientific community over their potential impact on research funding; the NIH’s is the world’s largest source of grants for biomedical research.
Research institutions across the US are facing growing financial challenges as prices for essential laboratory equipment and supplies continue to rise, compounded by recent uncertainty over federal funding and policy changes.
For example, New York’s Columbia University recently announced the layoff of about 180 staff following the Trump administration’s withdrawal of some $400 million in federal grants, a decision linked to concerns over alleged antisemitic harassment on campus.
This loss compelled Columbia to reduce or reconsider key research initiatives, including those focused on infectious diseases, maternal health and chronic illnesses.
“When there’s an interruption in funding, people have to leave, new people can’t be hired, some initiatives have to be put on hold, others need to be stopped, so research stops moving forward,” Marcel Agueros, an astronomy professor at Columbia, told the Associated Press.
Meanwhile, the National Science Foundation (NSF) has cancelled at least 1,000 ongoing research grants, totalling about $739 million in funding. This disruption comes amid the abrupt resignation of NSF director Sethuraman Panchanathan and the Trump administration’s proposed 56 percent reduction to the NSF budget for fiscal year 2026.
Ultimately, as costs escalate and funding remains uncertain, university administrators could face difficult decisions about their research priorities — decisions that risk weakening America’s future position in scientific innovation.
Moreover, the risk of retaliatory tariffs from major trading partners such as the EU, China and the UK remains an acute concern. These actions have already materialised, leading to increased costs. For instance, the EU has imposed retaliatory tariffs on €21 billion worth of US goods. China has also raised tariffs on American products, with rates reaching up to 125 percent.
Douglas Irwin, a Professor of Economics at Dartmouth College, highlighted the cyclical nature of trade wars, telling ABC News: “The essence of a trade war is you impose tariffs and other countries respond by putting high tariffs on your exports. It’s tit for tat.”
The operational disruptions and increased costs caused by these tariffs are likely to strain university research budgets, reducing available funding for equipment, supplies and projects, while potentially limiting the scope and progress of scientific research.
Global Race For Research Talent
The Trump administration’s policies have also inadvertently sparked fierce international competition, as countries around the globe position themselves to attract researchers affected by the increasing instability in the US.
Leading this effort are European powers, notably France and the wider EU. Recently, French President Emmanuel Macron and European Commission President Ursula von der Leyen jointly announced a €500 million fund to attract scientists affected by recent changes in US academic policies and economic disruptions linked to new tariffs.
Speaking at Paris’ Sorbonne University, Macron strongly criticised Trump’s approach, saying: “No one could have thought that the world’s biggest democracy, whose economic model relies so heavily on science, on innovation… would make such a mistake. But here we are.”
Britain, similarly sensing opportunity, has launched its own initiative to woo researchers. UK Prime Minister Sir Keir Starmer recently unveiled a £50 million scheme designed to attract international scientific researchers, initially planning to relocate approximately 10 research teams to the country.
The fund is targeting strategic sectors including life sciences, artificial intelligence and green energy. “International researchers underpin our world-leading R&D excellence and additional funding will help attract talented global researchers,” Ben Moore, Head of International Policy at the Russell Group of UK research universities, told the FT.
“It would be equally as helpful for government to review the visa costs researchers face, which far exceed those in other leading R&D nations,” he added.
Canada and Norway are also launching similar schemes to lure global research talent amid the challenges in the US.
A Threat To Innovation?
These international recruitment drives, coupled with domestic challenges, could erode America’s longstanding leadership in scientific research and innovation.
Macron has explicitly linked these policies to broader threats facing democracy, warning they could weaken the critical role science plays in democracy and decision-making based on evidence.
The French President, who pledged an additional €100 million to attract researchers, said: “Without free scientific inquiry, we lose… pillars of our societies which are the very heart of western liberal democracies, first and foremost of which is our relationship with the truth.”
These worries are heightened by Trump’s appointment of controversial figures like Robert F Kennedy Jr, a vocal vaccine critic, who became US health secretary in February 2025.
Kennedy’s leadership has raised concerns that scientific research funding — especially at key institutions like the NIH — is becoming politicised. Kennedy has cut billions of dollars from vaccine programmes already.
These decisions have caused strong pushback from scientists, fuelling fears that his actions could damage America’s scientific credibility.
“Scientific research has, more than anything, made America prosperous and is the last thing that should be curtailed…mixing politics with science is destroying America’s ‘golden goose’. We should all be deeply concerned,” wrote Michael Pravica, a physics professor at the University of Nevada, in the FT.
Universities are already feeling the effects of these new tariffs, facing higher costs for research equipment like microscopes, computer chips and lab chemicals. These sudden price increases put extra pressure on research budgets, creating delays and even forcing some projects to pause.
With the tariffs temporarily paused, universities now have a crucial window to figure out their next steps. One option would be to review their supply chains carefully, look for alternative suppliers and get a clear picture of how much these higher costs will affect their finances.
Universities are also having to decide which research projects are essential to continue now and which can be delayed until costs stabilise.
As these trends unfold, America’s leadership in global science could ultimately come under pressure, with other countries having swiftly begun recruiting American-based researchers.