U.S.-China Trade War 'On Hold' Mnuchin Says

U.S. Treasury Secretary Steve Mnuchin said Sunday that the United States and China have agreed to drop threats of tariffs on billions of dollars worth of each country's goods while a wider trade agreement is negotiated. 

"We are putting the trade war on hold. Right now we have agreed to put the tariffs on hold while we try to execute the framework," Mnuchin said on Fox News Sunday, referring to the measures on reducing the trade deficit between China and the U.S. 

The U.S. and China have been ramping up diplomacy efforts and have been talking about trade in which China would import more energy and agricultural commodities from the U.S. to help close the more than $335 billion trade gap between the two countries.

The breakthrough was announced Saturday after the U.S. won several commitments from Chinese officials with the two sides issuing a statement in which they said they had reached "a consensus on taking effective measures" in cutting the U.S.'s trade deficit with China. 

“To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services,” they said.

Threats of a trade war began last month after the U.S. and China announced a series of escalating tariff measures, that if implemented, could have resulted in a trade war. The Trump administration announced a 25 percent tariff on hundreds of Chinese products, including aircraft parts and dishwashing machines. 

China quickly responded, proposing tariffs of 25 percent on 106 American products like soybeans, cars and chemical products. The retailatory tariffs were seen as targeting farmers in America's agricultural areas, and factories in the "rust belt" - two important election battlegrounds. 

None of the tariffs ever took effect, and with today's announcement look unlikely to be implemented. Trade was one of President Trump's key issue while campaigning for president. The administration has also called for a new trade deal with Mexico and Canada and renegotiating NAFTA. 

Photo: Getty Images


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