WASHINGTON: U.S. Treasury Secretary Steven Mnuchin said on Wednesday he will likely travel to China soon to continue talks as Washington and Beijing seek to resolve a trade war that has cast a pall over the global economy and financial markets.
On Tuesday, U.S. President Donald Trump denied the talks with China had collapsed and sounded an optimistic note about the chance of a deal to end the trade war, saying he had an"extraordinary" relationship with Chinese President Xi Jinping. The Trump administration had pledged up to US$12 billion in aid to help offset losses for crops hit by Chinese tariffs.Amid complaints from trading partners in Europe and North America, who see the United States as having embraced a"carrot-and-stick" strategy that has been thin on carrots, the Trump administration may be signaling a softer approach.
The tariffs of up to 25 percent on cars and parts could have a devastating impact on Japan and countries in the European Union, particularly Germany. China retaliated on Monday with higher tariffs on a revised list of US$60 billion worth of U.S. products