Kazuo Waki
The comparison between “strategic decoupling” and “de-risking” provides a framework for analyzing how each candidate of the upcoming U.S. presidential election approaches economic security policies. De-risking, a key concept used by U.S. officials since 2023, characterizes the Biden-Harris administration’s approach to economic security. On the contrary, strategic decoupling is a term favored by Republican policymakers and those close to former President Donald Trump.
In short, these two terms represent the conceptual foundations of each candidate’s economic security policies. But what do they actually mean?
Distinctive Difference in Approaching Tariffs
The difference between de-risking and strategic decoupling manifests itself most notably in the field of tariffs. While both concepts recognize the necessity of tariffs, the rationale behind policies differ.
The Biden-Harris administration’s de-risking approach has resorted to tariffs, as the administration has upheld most of the tariffs imposed on China during the Trump administration, and they implemented new tariffs “to counter China’s unfair trade practices” in May 2024. It should be noted that de-risking selectively resorts to tariffs only in “carefully targeted strategic sectors.” The primary purpose of these tariffs is to mitigate reliance on China’s “excessive concentration in the market” with a focus on strategically significant sectors. In other words, de-risking-based policies are driven by the recognition of the threat posed by China, and they aim to prepare the United States for China’s potential weaponization of economic dependence.
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