Treasury Secretary Steven Mnuchin says trade war is “on hold” after progress in U.S. – China Talks

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Steven Mnuchin, the treasury secretary of President Trump said that United States of America will not impose $150 billion amount in threatened tariffs on China while U.S. and China are negotiating a deal to reduce America’s trade deficit with its economic rival.
He has reported to the Fox News Sunday as “we are putting the trade war on hold”. Furthermore, the treasury secretary has said that they have agreed to put this tariff on hold, while they are trying to execute an agreement with China, under which China would have to increase their purchases in U.S. goods.
The treasury secretary Steven Mnuchin himself, as well as the other administration officials of President Trump, held talks with Liu He, the Chinese Vice Premier last week. Their meetings were mainly done with the intention of trying to resolve the current trade dispute.
The Trump administration has threatened the Chinese government to impose an amount up to $150 billion in tariffs on the Chinese products. They consider this as a part of an effort to address the imbalance between U.S and China trade and also to penalize China for forcing the companies in America to turn over their technology in exchange for the access to Chinese market. China has responded to this by targeting $5o billion for American products.

However, the treasury secretary has reported that the last week’s talks with China have being a big progress. There they have got an agreement from the Chinese leaders to increase their purchases of U.S. products. He has not confirmed the reports regarding the news that China has offered to increase their purchases in American goods by $200 billion. Steven Mnuchin has reported to Fox News, that they have specific targets and he is not going to disclose what the targets are.
Furthermore, Steven Mnuchin stated that Wilbur Ross, the Commerce Secretary will be travelling to China with the aim of following up the hard commitments from the Chinese government to increase their purchases in both American energy as well as agricultural sectors.
The Treasury Secretary denied that the Chinese concession was a result of Trumps promise to help ZTE, a massive Chinese phone company. The American Commerce Department has accused ZTE for violating the March 2017 settlement. In there, the firm has agreed to pay an amount of $1.19 billion for illegal shipping of tele-communication equipment to both North Korea and Iran.
Donald Trump, the President of America suggested that he wants the American government to handle ZTE with ease, in last weekend. The president has tweeted that he is working with the Chinese President to find a way for ZTE to get back into their business very quickly. In his tweet he also has mentioned that he has advised the Commerce Department to go on easy with this ZTE issue as thousands of people are losing their jobs in China due to this problem.
Steven Mnuchin stated that the President of America asked Ross, the Commerce Secretary to look into this ZTE issue and the changes made with the will on “Protecting American technology and American jobs”

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