How tariffs wiped out U.S. consumers' tax cut

Cheryl Sanders
June 9, 2019

U.S. Treasury Secretary Steven Mnuchin said Saturday talks on trade war with China are unlikely to resolve anything before the G-20 summit later this month.

Nevertheless, Mnuchin also pointed to the positive boost to the world economy that could result from a breakthrough in trade talks, likely to be the main focus of a meeting between the U.S. and Chinese leaders at a G20 summit later this month.

In Washington, meanwhile, President Donald Trump tweeted that he will refrain from a 5% tariff on exports from Mexico, citing progress on the migration issue.

Federal Reserve Chairman Jerome Powell (L) talks with US Treasury Secretary Steven Mnuchin during the G20 finance ministers and central bank governors meeting in Fukuoka on June 8, 2019.

"If they want to come back to the table and complete the deal on the terms that we were continuing to negotiate, that would be great", Mnuchin said, according to the Times.

Meanwhile, Yi, in an interview with Bloomberg News on Friday, had said that the discussion of trade with Mnuchin would be "uncertain and hard", and he insisted that China could withstand a prolonged trade fight with the US.

Mnuchin will also meet with People's Bank of China Governor Yi Gang on Sunday, . on the sidelines of the G20 meeting.

These tariffs could be ready for activation around the end of June, when the Osaka G-20 summit take place. -China tariffs imposed and threatened by the two superpowers could trim as much as 0.5 percentage points from the global economy next year - an amount $455 billion bigger than the entire economy of South Africa.

Apart from imposing punitive tariffs, the United States has also restricted Chinese tech giant Huawei's access to American technology over national-security concerns.

International Monetary Fund chief Christine Lagarde, who is also attending the meeting, has warned that tariffs and trade friction are "self-inflicted" wounds that will harm the global economy at a "delicate juncture".

And that's not even taking into account the U.S. president's newest threat to slap tariffs on all goods from Mexico.

But the U.S. is still negotiating new trade deals with Japan after withdrawing from a Pacific Rim arrangement, the Obama-era proposed Trans-Pacific Partnership.

Negotiations broke down in early May, . with both sides launching a series of trade threats and tariffs thereafter.

But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

"We now have an agreement that we believe is going to fix the immigration issue".

Other reports by iNewsToday