Treasury Secretary Steven Mnuchin says Tariffs will Remain Past Phase 2
Just a week after President Trump announced that he would stop the tariffs after Phase 2 of the two part deal was completed. The news that the US could keep tariffs on thousands of imports from China even if the two sides can fashion a more extensive trade agreement, per Treasury Secretary Steven Mnuchin.
He has said that a professed phase-two deal may not be the "big bang" that lifts tariffs in a nearly two-year economic dispute between the largest economies. Trump feels that China has been getting over the United States for too long and decided that a trade war was necessary.
"We may do 2A and some of the tariffs come off," Mnuchin said to reporters on the sidelines of the World Economic Forum in Davos, Switzerland. "We can do this sequentially along the way."
In an attempt to ease tensions between the two the US and China on Wednesday signed a phase-one agreement , guiding the way for another stage of trade negotiations. The truce reduced rates on a portion of Chinese tariffs but left said tariffs on $360 billion worth of Chinese products.
"I will agree to take those tariffs off if we are able to do phase two," Trump said on Wednesday, adding: "I'm leaving them on because otherwise, we have no cards to negotiate with. But they will all come off as soon as we finish phase two." However, other senior officials are not so sure.