The tariffs on China have not had a significant effect on the United States’ economy, and will continue until or unless a solid trade deal is reached between the 2 countries, US Treasury Secretary Steven Mnuchin said Monday.
“If we can get a good deal, a deal that is good for us, we will sign it,” Mnuchin said on TV. “If not, the President is perfectly fine with continuing the tariffs, which are raising significant amounts of money for the US treasury.“
There is no question there is a “considerable showdown” of the world’s economy, both in China and in Europe, but the United States remains “the bright spot of growth,” Secretary Mnuchin said.
“I do not see in any way a US recession,” he said. “I think if you look about at interest rates, I think what you see is both in terms of long-term interest rates a historic low good for the economy, I think you see that on a relative basis, we are still high relative to the rest of the world on interest rates…I don’t in any way think yield curve reflects a recession. We see very health robust growth for the balance of the year.”
There are talks coming up with China, on the vice-minister level, at the beginning of October, and the object remains to get a good deal after talks broke down earlier this year.
Secretary Mnuchin said it is “fair” to say the tariffs have impacted China, while “we have not seen yet” any impact on the US economy.
“Ambassador Lighthizer has done a very good job managing the exception process on a case-by-case basis,” said Secretary Mnuchin.
It is also “no question” that US growth is “significantly higher” than that in the rest of the world, said Secretary Mnuchin, because “the Trump economy, the economic plan, is working.”
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