The United States is preparing to unveil a new trade initiative with Asia-Pacific partners focused on technology and cybersecurity, in a bid to strengthen supply chains and reduce reliance on China.
Officials confirmed that negotiations are nearing completion on a framework agreement covering tariff reductions on semiconductors, electronics, and critical technology components. The pact is also expected to establish shared cybersecurity standards and data-sharing mechanisms among signatories. Japan, South Korea, and Australia are reportedly among the first countries ready to endorse the deal.
Bipartisan support likely
The White House has briefed congressional leaders, who appear cautiously supportive. Both parties see strategic value in reinforcing alliances at a time of heightened geopolitical competition. The administration is presenting the initiative as a means of creating “trusted networks” for sensitive technologies, ensuring resilience against global supply disruptions.
Domestic debate
Labour unions have expressed concern that tariff reductions may undercut US manufacturing jobs, particularly in lower-value electronic assembly. However, administration officials argue that the pact focuses on high-end technology components where the US seeks to build competitive advantage. They stress that the goal is not to offshore jobs but to secure supply chains critical for defence and industry.
Regional impact
Analysts suggest the agreement could shift investment flows across the Asia-Pacific, encouraging closer cooperation between like-minded democracies. For Beijing, the move may be viewed as an attempt to isolate Chinese firms from global technology supply chains. The response from China will be closely monitored in the coming weeks.
Strategic importance
For Washington, the pact represents both an economic and geopolitical tool. By shaping standards and reducing dependencies, the US hopes to maintain influence over the technologies that will define the next decade. The announcement, expected within days, could become one of the administration’s most significant trade policy achievements.
REFH – Newshub, 23 August 2025
