Mnuchin 'Wouldn't Minimize' Chance of Tariffs on All Chinese Goods--Update
July 21 2018 - 1:03PM
Dow Jones News
By Jeffrey T. Lewis
BUENOS AIRES -- U.S. Treasury Secretary Steven Mnuchin said he
"wouldn't minimize" the possibility that the U.S. will impose
tariffs on all $500 billion worth of goods that the U.S. imports
from China, amplifying a threat President Donald Trump made in a
television interview earlier in the week.
Mr. Mnuchin was speaking ahead of a meeting among G-20 finance
ministers and central bankers here.
Mr. Mnuchin stressed that the administration's goal is to
achieve a "more balanced" trade relationship with China, by getting
the Asian country to open its economy and permitting U.S. exports
there to increase.
The Treasury secretary pointed out several sectors where U.S.
sales to China could rise, including energy, agricultural products
and technology.
"China has a large, growing population that will consume more
products" and that likes American products, he said, while
cautioning that U.S. companies shouldn't be pressured to share
their technology.
Mr. Mnuchin also talked about the administration's willingness
to sign trade agreements with the European Union and Japan, always
with the objective of opening up markets and permitting what he
called "real" free trade.
"If Europe believes in free trade, we're ready to sign a
free-trade agreement," he said, adding that any agreement would
have to eliminate tariffs, along with other barriers and subsidies.
"It has to be all three issues," he said.
During the meeting with reporters Saturday, the Treasury
secretary played down comments Mr. Trump made earlier in the week
about the Federal Reserve and currency markets. Mr. Trump said in a
tweet and in a television interview he wasn't happy that the Fed is
raising short-term interest rates, which he said is undermining
administration efforts to rev up U.S. economic growth. It was
unusual because the White House usually refrains from commenting on
monetary policy.
Mr. Mnuchin said he and the president still "fully" supported
Fed independence. He also said the U.S. isn't trying to interfere
in foreign-exchange markets after Mr. Trump accused China and the
European Union of manipulating their currencies to make their
economies more competitive.
The president has threatened tariffs on $500 billion in Chinese
imports before. On July 6 on Air Force One, the president told
reporters tariffs could eventually hit $550 billion in imports from
China.
When asked during Friday's CNBC interview, "Will you ever get to
500, though?" Mr. Trump responded that he is "ready to go to 500,"
referring to the approximate dollar value of Chinese goods exported
to the U.S. last year.
"I'm doing this to do the right thing for our country. We have
been ripped off by China for a long time," he said.
Earlier this month, the U.S. imposed levies on $34 billion of
Chinese exports of machinery, components and electronics. Also
scheduled are tariffs on $16 billion of Chinese electronics and
other components.
The U.S. has identified a further $200 billion in Chinese goods
the U.S. may target for tariffs, for a total of $250 billion.
Anything further, Mr. Trump has said, depends on the extent to
which China retaliates.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
July 21, 2018 12:48 ET (16:48 GMT)
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