Markets

Mnuchin tells WSJ that phase 2 of China trade deal may not remove all tariffs

Key Points
  • Steven Mnuchin said the next step in trade negotiations with China could be a phase "2A" that removes some, but not all, of the tariffs, according to the Wall Street Journal. 
  • The United States and China officially signed the first phase of the trade deal last week in Washington, D.C.
Treasury Secretary Steve Mnuchin speaks about sanctions against Turkey at a news briefing at the White House in Washington, October 11, 2019.
Yuri Gripas | Reuters

Treasury Secretary Steven Mnuchin said to the Wall Street Journal on Tuesday that a phase 2 trade deal with China may not remove all of the current tariffs.

In an interview with the newspaper at the World Economic Forum in Davos, Switzerland, Mnuchin said the next step in trade negotiations with China could be a phase "2A" that removes some, but not all, of the tariffs.

Mnuchin also warned that the second phase might not be a "big bang."

The United States and China officially signed the first phase of the trade deal last week in Washington, D.C. As part of the agreement, China said it plans to buy more goods from the U.S. over the next two years. The U.S. announced shortly before the signing that it no longer considered China a currency manipulator.

In a speech at Davos on Tuesday, President Donald Trump encouraged other countries to put their own citizens first in economic policy decisions such as trade deals.

Mnuchin also said that some European countries could face tariffs if they impose taxes on U.S. tech companies, according to the Journal.

Read the full story from the Wall Street Journal here.

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