US warns of 'consequences' if China abandons trade deal
05 May, 2020
US Treasury Secretary Steven Mnuchin said on Monday (May 5) he expects China to uphold a trade deal reached with Washington this season, and warned of "consequences" if the country did not.
The comments come amid a sharp drop in global trade due to the coronavirus pandemic as well as a dispute between your two powers over fault for the spread of the virus, which first broke out in Wuhan, China.
The US and China in January signed an agreement to get rid of a practically two year-long trade war, that included a commitment by Beijing to buy yet another US$200 billion in American goods over the next two years.
"I'm expecting them to meet up their obligations," Mnuchin said on Fox Business Network.
"I have every reason to anticipate that they honor this agreement and if they don't, there would be very significant consequences in the partnership and in the global economy concerning how people would work with them."
However, relations between Washington and Beijing have soured in recent weeks, around President Donald Trump blaming China for the pandemic, and threatening tariffs.
THE UNITED STATES has been hit with tens of an incredible number of layoffs as the virus has spread, drastically weakening the previously solid economy, which Trump was relying on to win re-election in November.
The trade agreement signed in January includes US$77.7 billion in additional purchases from the manufacturing sector, US$52.4 billion from the energy sector and US$32 billion in agricultural products.
The US currently runs a trade deficit with China, and the target is to realign the trade balance between your two countries.
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