Treasury Secretary Mnuchin Says US Tariffs to Go Up in December if There Is No Deal With China

US Treasury Secretary Steven Mnuchin told CNBC on Monday he expects the mid-December round of tariffs on Chinese goods to take effect if no deal is reached between the two economic superpowers.

Mnuchin made his comments on keeping tariffs on the table days after President Donald Trump announced a “fundamental agreement in principle” for a “phase one deal” following a round of renewed high-level negotiations with Beijing in Washington.

“I have every expectation if there’s not a deal those tariffs would go in place, but I expect we’ll have a deal,” Mnuchin said on CNBC’s “Squawk Box.”

The two countries addressed intellectual property rights, financial services, including currency and foreign exchange, and “very significant structural issues” dealing with agriculture, a key sticking point in the ongoing tariff battle, according to Mnuchin.

The Treasury Secretary said the US expects China to buy $40 billion to $50 billion worth of agriculture products, echoing Trump’s earlier tweet written in caps “CHINA HAS ALREADY BEGUN AGRICULTURAL PURCHASES FROM OUR GREAT PATRIOT FARMERS & RANCHERS!” China will be removing some tariffs on imports of US goods, Mnuchin added.

In the Oval Office on Friday, however, Mnuchin said the White House would hold off on Tuesday’s deadline to impose more tariffs on China, which is December 15.