US-China Trade Deal Signals Strategic Decoupling: Bessent Explains New Tariff Policy

The United States and China have reached a trade agreement that marks a significant step in the decoupling of the two economies. Treasury Secretary Scott Bessent stated that this agreement is part of a broader strategy to create more resilient supply chains for critical goods. The agreement includes a reduction in tariffs on certain goods from China, but maintains tariffs on others, reflecting a targeted approach to economic independence. "This is not a generalized decoupling," Bessent explained, "but a strategic move to protect vital sectors like steel and semiconductors." This targeted approach aims to mitigate risks associated with over-reliance on a single supplier, particularly in the wake of the COVID-19 pandemic, which exposed vulnerabilities in global supply chains. The agreement underscores the growing geopolitical tensions between the two nations and their efforts to secure their economic interests.