US Treasury to Compile Supply Chain List Including Semiconductors and Pharmaceuticals

List of Industries Requiring Secure Supply Chains
Criticism of China for Exporting Deflation Globally
No Direct Answer on Tariff Exemptions for Australia

Scott Bessent, U.S. Secretary of the Treasury, announced that semiconductors and pharmaceuticals will be included in the list of supply chain restructuring within the United States. This is interpreted as reflecting the policy stance of the Donald Trump administration to exclude China from access to advanced technology industries and to build a U.S.-led supply chain.

According to Bloomberg and Reuters, Secretary Bessent said at an event held at the Australian Embassy in Washington DC on the 25th (local time), "We will create a list of industries that require secure supply chains," adding, "Semiconductors and pharmaceuticals are included in those industries."

He stated that the U.S. economy is more vulnerable than economic indicators suggest, citing interest rate volatility, entrenched inflation, and employment creation concentrated in the government sector as reasons.

He criticized, "The previous administration left us with an economy that appears adequate on some indicators due to excessive government spending and heavy-handed regulation, but is ultimately fragile inside."

Regarding China, with which the U.S. is in tariff disputes, he pointed out that China needs to increase domestic consumption and should not continue to rely on manufacturing and exports for economic growth. He argued, "We need to push back against China and say that China cannot export its deflation to other countries in the world."

Deflation refers to an economic downturn accompanied by falling prices. The U.S. has long criticized China for defending its economic slowdown by producing more products than demand and exporting them to other countries, and Bessent reiterated this point. He recently stated, "China is in a state of deflation and is trying to compensate through exports."

He also announced that in evaluating reciprocal tariffs, he will review China’s non-tariff barriers and exchange rate policies. Secretary Bessent’s decision to review exchange rate policies stems from experiences during Trump’s first term. At that time, President Donald Trump imposed high tariffs on China, but China responded by devaluing the yuan, offsetting the tariff effects.

Regarding trade relations with Australia, Secretary Bessent evaluated, "So far, it has been good."

However, when asked about the possibility of exempting Australia from U.S. tariffs on steel and aluminum, he avoided a direct answer, stating that it falls under the jurisdiction of the U.S. Trade Representative (USTR) and the Department of Commerce. During Trump’s first term, the president did not impose aluminum tariffs on Australia.

Nevertheless, the proclamation signed by President Trump on the 10th includes imposing a 25% tariff on all steel and aluminum imported into the U.S., along with a statement that "Australia ignored its verbal commitment to voluntarily limit aluminum exports to reasonable levels."

Secretary Bessent said that President Trump wants to diversify the sourcing and processing of critical minerals and that Australia can play a role in this.

This content was produced with the assistance of AI translation services.