Trade war threats

WASHINGTON – Despite threats of retaliation from China over US plans to impose tariffs on up to $60 billion in Chinese goods, treasury secretary Steve Mnuchin on Sunday said President Donald Trump had no intention of backing down and was not worried about a trade war.

“We are going to proceed with our tariffs. We’re working on that,” mR Mnuchin told Fox News Sunday. “So, as Mr Trump said, we’re not afraid of a trade war, but that’s not our objective.”

Fears of a trade war between the United States and China have sent US stock prices tumbling. The Dow Jones Industrial Average .DJI and the S&P 500 .SPX both lost nearly 6 per cent by the end of last week.

A presidential memorandum signed by Mr Trump last week will target up to $60 billion in Chinese goods with tariffs over what his administration says is misappropriation of US intellectual property, but only after a 30-day consultation period that starts once a list is published.

Mr Trump gave the Treasury Department 60 days to develop investment restrictions aimed at preventing Chinese-controlled companies and funds from acquiring US firms with sensitive technologies.

Mr Mnuchin said he believed the United States could reach an agreement with China on some issues, but said the tariffs would not be put on hold “unless we have an acceptable agreement that the president signs off on.”

China has urged the United States to “pull back from the brink” on the tariffs and threatened to retaliate by hitting US agricultural exports.

Without giving a time frame, China’s commerce ministry said the government was considering a 25 per cent tariff on US pork. It did not announce potential tariffs on soy.