Treasury Sec. Mnuchin: China Tariffs to Remain on Until Phase 2 Deal

Will Donald Trump Win the 2020 Election?

  •                        

Treasury Secretary Steven Mnuchin said late Tuesday the United States would keep in place tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement.

The news came hours before the signing of a preliminary trade agreement to ease an 18-month-old trade war between the world’s two largest economies.

Wall Street stocks dipped Tuesday, reversing earlier intraday record highs, after media reported the United States would likely maintain tariffs on Chinese goods past November’s presidential election.


“We should not expect further tariff relief until after the November Presidential elections, suggesting that today’s agreement is probably as good as it gets for 2020,” said Tapas Strickland, director of economics at National Australia Bank.

U.S. Treasury yields ticked down as investors took stock of weaker-than-expected consumer prices and the expected signing of the interim trade deal, with benchmark 10-year note yield falling to 1.807%.

Markets were also absorbing news the U.S. government is nearing publication of a rule that would vastly expand its powers to block shipments of foreign-made goods to China’s Huawei, as it seeks to squeeze the blacklisted telecoms company, two sources said.


© 2020 Thomson/Reuters. All rights reserved.


Read more

Facebook has greatly reduced the distribution of our stories in our readers' newsfeeds and is instead promoting mainstream media sources. When you share to your friends, however, you greatly help distribute our content. Please take a moment and consider sharing this article with your friends and family. Thank you.