Mnuchin Hints On Trump's Intentions Of Easing Huawei Sanctions
Some good news has come out of Washington this week, one that may lead to an eventual resolution of the ongoing trade war between China and the United States. US Treasury Secretary Steven Mnuchin mentioned on Sunday that he believes President Donald Trump is willing to ease the country's restrictions on Huawei if progress is made in the current trade negotiations with China.
The US' ban on Huawei has had a wide-reaching effect throughout the tech world, with some analysts calling it a new kind of cold war within the tech industry. Mnuchin mentioned that Trump is apparently willing to lift the trade ban on Huawei, but only if China is willing to cooperate in coming up with an acceptable deal for both parties.
According to Mnuchin, the United States is apparently now ready to move forward with a deal, but if China is unwilling to move forward with it, Trump will move forward with his planned tariff hikes to "rebalance the relationship."
The US official also warned that the country will still be maintaining its elevated tariff rates to make up for its deficit; at least until a trade deal with China is finalized. Trump previously imposed massive tariff hikes on billions of dollars worth of Chinese goods, which he reasoned were to combat "unfair trade practices" against the United States.
Despite Huawei's continued denial of any wrongdoing and of its equipment being used by China to spy on other countries, the United States still stands by its previous accusations. Mnuchin mentioned over the weekend that the country is still considering Huawei's ban a national security issue.
The US has stood by its accusations against Huawei despite an apparent lack of concrete evidence.
Apart from banning the telecommunication equipment provider from doing business with US companies, the country has also urged its allies to ban Huawei from constructing their 5G infrastructures. This has caused Huawei to lose contracts it would have otherwise gotten were it not for the US' intervention.
Aside from commenting on the current trade negotiations with China, Mnuchin also talked about the country's stand on Mexico. Mnuchin stated that he was confident Mexico would be able to meet the country's demands and stand by its commitments to curb illegal immigration into the United States. However, Trump is apparently still willing to move forward with his threats of imposing tariffs on Mexican imports if the country does not keep its end of the deal.
A day prior to Mnuchin's statement, Trump had mentioned on social media that he was hopeful that the agreement between the United States and Mexico would be successful and that he believes Mexico will "try very hard" to fulfill its commitments.