President Donald Trump hasn’t scrapped the idea of “decoupling” the U.S. economy and supply chains from China — and could still consider such an economic realignment.
He suggested the strategy in a tweet Thursday.
“It was not Ambassador Lighthizer’s fault (yesterday in Committee) in that perhaps I didn’t make myself clear, but the U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China. Thank you!" Trump wrote.
Trump appeared to have sent the tweet during a White House event on reopening the economy from coronavirus-related shutdowns with GOP Govs. Pete Ricketts of Nebraska Kevin Stitt of Oklahoma, The Hill reported.
On Wednesday, U.S. Trade Representative Robert Lighthizer testified before the House Ways and Means Committee, saying he didn't think a full decoupling was possible, though he favored bringing supply chains back to the United States.
“Do I think that you can sit down and decouple the United States economy from the Chinese economy? No. I think that was a policy option years ago. I don't think it's a policy, a reasonable policy option at this point," he said in response to a question from Rep. Darin Lahood, R-Ill., The Hill reported.
The issue is gaining traction in the wake of the coronavirus pandemic, which highlighted a crippling U.S. dependence on foreign suppliers of certain goods.
But outside of supplies with public health or national security implications, some economists warn decoupling would only set the table for an economic cold war, The Hill reported.
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