if the cost is going to be trillions of dollars, does the US government raise taxes or grow the deficit further ?
The history of the last cold war suggests both. The problem is, if we choose to go the deficit route it will cost twice as much in the long run and we’ll end up transferring more of our wealth to China, who are not likely to be our ally in this conflict.
The other alternative is of course to make a bigger economy. That’s how a certain BA in economics from Eureka College won the last cold war. The west just out grew the Soviet block until their economy collapsed.
The two best ways to stimulate growth and make a bigger economy are to cut taxes to allow businesses and individuals to free up more of their capital or to cut regulation to let them reduce their operating expenses. A good start would be to greatly reduce regulation of the petroleum industry - drill here, drill now, win Cold War II.