US to Strategically Decouple from China in Key Sectors: Treasury Secretary

The US and China have agreed to a 90-day pause on new tariffs, but the long-term economic relationship remains uncertain. Treasury Secretary Scott Bessent, appearing on MSNBC's Morning Joe, outlined a strategy of "strategic decoupling" in key sectors such as steel and semiconductors. Bessent stated, "We have to be 'self-reliant again.'" This move, he explained, is a response to what he called the "China shock" which has negatively impacted the American manufacturing sector. He emphasized that while the administration seeks "free and fair trade," the current system has not worked for the American people. The focus will be on addressing non-tariff trade barriers and subsidies that allow China to undercut American businesses. Bessent's comments offer a glimpse into the complex economic considerations shaping US-China relations, signaling a shift towards a more cautious and selective approach to trade.