Ahead of the G20 meet, where the US and Chinese President are set to resume trade talks, US Treasury Secretary Steven Mnuchin shared an optimistic message with the world. On Wednesday, Mnuchin told CNBC that ‘about 90%’ of the deal between the United States and China is done. He said, “We were about 90% of the way there (with a deal) and I think there’s a path to complete this.”
He was hopeful that US President Donald Trump and Chinese President Xi Jinping would make progress in otherwise stalled trade talks at G20 summit. The leaders of the Group of 20 nations are set to meet in Osaka, Japan over this weekend. Mnuchin said, “The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship.”
The meeting is very crucial for not only the two nations but the global economy. According to the report published by World Trade Organisation, since the trade war first started in July 2018, US$815.9 billion worth of trade has been affected due to preventive measures. The report showed that within the time frame of 7 months, i.e from October 16, 2018 and May 15, 2019, 20 new restrictions got introduced between the world’s most powerful economies, covering trade worth US$335.9 billion.
Mnuchin’s statement boosted the market sentiment, which was otherwise very sceptical about the outcome of the US-China talks. He said that there could be a ‘win-win’ scenario for both the nations and was positive that a deal could be struck by the end of the year, but ‘there needs to be the right efforts in place’.
Earlier, Trump threatened to impose tariffs on another $325 billion of goods, covering nearly all the remaining Chinese imports into the United States. The decision to go for another round of tariffs is under consideration and US is willing to suspend the tariff till Beijing and Washington continue trade negotiations.