Jing Pan

Mon, Jun 9, 2025, 4:17 AM5 min read

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In a stunning reversal of policy, President Donald Trump slashed “Liberation day” tariffs on China from 145% to 30% for 90 days as of May 14.

The landmark agreement between the world’s two largest economies has gained traction — erasing the stock market’s losses in the wake of “Liberation day” tariffs in early April.

While negotiations are still ongoing, U.S. Treasury Secretary Scott Bessent said that the goal is to drive strategic decoupling between the two superpowers.

“We do not want a generalized decoupling from China,” Bessent said during an interview with CNBC.

“But what we do want is a decoupling for strategic necessities, which we were unable to obtain during Covid and we realized that efficient supply chains were not resilient supply chains.”

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However, industry-specific tariffs remain in place. This is part of Trump’s greater push to revive the country’s manufacturing sector.

“We are going to create our own steel. [Tariffs] protect our steel industry. They work on critical medicines, on semiconductors,” Bessent said “We are doing that, and the reciprocal tariffs have nothing to do with the specific-industry tariffs.”

But affordability remains one of the biggest concerns for Americans. The average tariff rate on imports stands at 17.8% — the highest since 1934. This is expected to cost median households in the U.S. approximately $2,800, according to a recent Yale Budget Lab report.

However, Bessent argues that affordability isn't just about cheap imports — it’s about ensuring Americans can build real financial security.

“What I’m saying is the American dream is not ‘let them eat flat screens,’” Bessent noted during an appearance on NBC’s Meet the Press.

“If American families aren't able to afford a home, don't believe that their children will do better than they are [doing], the American dream is not contingent on cheap baubles from China, it is more than that. And we are focused on affordability, but it's mortgages, it's cars, it's real wage gains.”

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Bessent’s remarks highlight one of the most pressing financial issues for Americans today: the soaring cost of homeownership.