Trade deal with China to boost global economy: Mnuchin

U.S. Treasury Secretary Steven Mnuchin said a "phase one" trade deal between the United States and China was "very good" for global economic growth, and added that the second phase could come in several steps. The United States and China cooled their trade war, announcing a "phase one" agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods.

"We expect it will be fully executed in

January. And then we get to ' phase two'," Mnuchin told the Doha Forum conference in Qatar. "The most important issue is - lets make sure we implement ' phase one' with an enforceable agreement, which it is. And then we start negotiating ' phase two'.

"There are important issue left in 'phase two'. And perhaps there will be a 'phase two A', 'phase two B' and 'phase two C'. We will see," he said.

Mnuchin said the deal with China aimed to create more reciprocal trade relations for many years, adding that the deal would be "very good" for global growth.

He said the United States continued to remain the "bright spot" of the global economy, while Europe and Asia were slowing down.

Asked if the trade deal boosts U.S. President Donald Trump's chances of getting re-elected in November 2020, Mnuchin said: "The president will be reelected almost no matter what occurs. Because he has built an incredible economy and he is very focused on national security." Mnuchin also said he believed the United States campaign of maximum pressure on Iran was working and has drastically reduced Tehran's ability to sponsor what Washington sees as terrorist groups abroad.

Asked if Washington's broad and regular use of sanctions against many nations could undermine the long-term status of the dollar as the global reserve currency, Mnuchin said sanctions were often an alternative to open military conflicts. "But if we are not careful with sanctions, people will start using other currencies," he added.

Meanwhile, China has suspended additional tariffs on some U.S. goods that were meant to be implemented on Dec. 15, the State Council's customs tariff commission said on Sunday, after the world's two largest economies agreed a "phase one" trade deal.

The deal, rumors and leaks over which have gyrated world markets for months, reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods.

China's retaliatory tariffs, which were due to take effect on Dec. 15, were meant to target goods ranging from corn and wheat to U.S. made vehicles and auto parts.

Other Chinese tariffs that had already been implemented on U.S. goods would be left in place, the commission said in a statement issued on the websites of government departments including China's finance ministry.

"China hopes, on the basis of equality and mutual respect, to work with the United States, to properly resolve each other's core concerns and promote the stable development of U.S.-China economic and trade relations," it added.

Beijing has agreed to import at least $200 billion in additional U.S. goods and services over the next two years on top of the amount it purchased in 2017, the top U.S. trade negotiator said Friday.

A statement issued by the United States Trade Representative also said the United States would leave in place 25% tariffs on $250 billion worth of Chinese goods.