Treasury Secretary Scott Bessent stated that the US seeks decoupling from China for “strategic necessities.”
In an interview with CNBC following the announcement of a joint statement in which the US and China agreed to reduce imposed tariffs by 115 percentage points each for 90 days, Bessent elaborated on this stance.
“We don’t want a generalized decoupling with China,” he said. “But what we do want is decoupling for strategic necessities—things we couldn’t secure during the COVID-19 period, when we realized that efficient supply chains are not necessarily resilient supply chains.”

During the COVID-19 pandemic, the US faced supply chain disruptions that made it difficult to secure raw materials for high-cost electronics, automobiles, and other products. The tech industry, reliant on semiconductors, was also hit hard. As a result, CNBC noted, the US experienced a surge in inflation not seen in over 40 years.
Earlier, at a press conference, Bessent had stated, “Both delegations agreed that neither side wants decoupling,” emphasizing that both nations are striving to achieve balanced trade.

In the CNBC interview, Bessent said, “We will produce our own steel. [Steel tariffs] protect our steel industry. [Item-specific tariffs] are also effective for essential medicines and semiconductors. We’re doing that, and mutual tariffs are separate from item-specific tariffs.” The tariffs reduced by both sides in this agreement do not include item-specific tariffs on automobiles, steel, aluminum, or upcoming tariffs on pharmaceuticals.
Bessent hinted that the next round of negotiations would take place within weeks.
He described Chinese Vice Premier He Lifeng, who led China’s negotiating team, as a “very skilled negotiator.”

When asked by the host whether China, facing recent economic challenges, appeared desperate or resolute in the talks, Bessent responded, “I didn’t sense any anxiety. The talks felt forward-moving, with an atmosphere of mutual respect.”
He added, “There was also a sense that we share common interests,” but noted, “We are a deficit nation, and historically, deficit nations have an advantage in negotiations.”
Meanwhile, White House National Economic Council (NEC) Chair Kevin Hassett assured that store shelves would not be empty during the Christmas shopping season.
In a CNBC interview, Hassett said that even with higher tariffs, shoppers would not have seen empty shelves by the end of summer, adding, “Now we’re cruising through to Christmas.”
He noted, “We are rebooting [US-China] relations,” expressing optimism that a broader deal could be reached within the 90-day period.
Yonhap News