The Treasury Secretary, Scott Bessent, said on Monday that the trade agreement concluded during the weekend represents another stage in the United States recovering from Chinese products.
Although the American “decoupling” itself of its inexpensive need for imports from China has been discussed for years, the process has been slow and unlikely to signify a complete break.
However, Bessent said that there were now specific decoupling elements in place which are vital for American interests. The United States has imported nearly $ 440 billion in China in 2024, managing a commercial deficit of $ 295.4 billion.
“We do not want a generalized decoupling of China,” he said during an interview on CNBC “Squawk box. “” But what we want is a decoupling for strategic necessities, which we could not obtain during COVVID and we realized that effective supply chains were not resilient supply chains. “”
When the pandemic struck in 2020, demand in the United States went from greater to services to an emphasis on goods. This meant more difficulty in obtaining equipment for several products, including household appliances and cars with large tickets. The technological industry, with its dependence on semiconductors, has also been affected. What followed is an increase in inflation in the United States that we have not seen for over 40 years.
THE Details of the American-China Pact Are still summary, but US officials have said that so-called reciprocal rates will be suspended, although 10% tasks of 10% will remain in force.
“We are going to create our own steel. (Prices) Protect our steel industry. They work on critical drugs, on semiconductors,” said Bessent. “We do this, and the reciprocal prices have nothing to do with the specific tariffs of the industry.”
The agreement between the two parties is essentially a 90 -day break which will see the reciprocal tasks interrupted, although the price of 10% as well as a load of 20% linked to fentanyl remain in place.
Bessent has expressed their encouragement on the fentanyl issue in which Chinese officials are now serious at the idea of helping the United States to stop the flow of precursor drugs. ” Bessente did not indicate a specific date When the next series of talks will take place, but said it should take place in the coming weeks.
