Treasury Secretary Steven Mnuchin said Sunday there is a risk of a trade war between the U.S. and China, but doesn’t expect one.
“Our expectation is that we don’t think there will be a trade war; our objective is to continue to have discussions with China. I don’t expect there will be a trade war — it could be, but I don’t expect it at all,” he told CBS’s “Face The Nation.”‘
Earlier Sunday, President Trump said he and Chinese President Xi Jinping would remain “friends” as the “dispute on trade” between their two countries plays out.
“China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!” Trump added in a tweet Sunday morning.
The White House revealed late Thursday that Trump asked his U.S. trade representative to evaluate the need for tariffs on an additional $100 billion of Chinese goods on top of the tariffs the U.S. already said it was pursuing on $50 billion worth of products from China.
In response, China, after announcing earlier in the week it was prepared for a retaliatory 25 percent tariff on $50 billion worth of U.S. imports, said Friday it would “dedicate itself to the end and at any cost and will definitely fight back firmly” if the U.S. persists with the tariffs.
China is also expected to file a case against the U.S. in the World Trade Organization, just as the U.S. is preparing a WTO case against China.
Mnuchin added the Trump administration’s will have a “meaningful impact on the economy.”
“Our objective is free and fair trade,” he said.
