Treasury Secretary Steven Mnuchin is signaling his displeasure with President Donald Trump’s trade war with China by saying nothing at all.
Treasury Secretary Steven Mnuchin is signaling his displeasure with President Donald Trump’s trade war with China by saying nothing at all.
Mnuchin, typically a vocal booster of even Trump’s small-bore economic achievements, is maintaining a deliberate silence to show his dissatisfaction as the president proceeds with tariffs on tens of billions of dollars in Chinese goods, said two people familiar with his thinking. He aims to resolve disputes over trade policy internally, they said.
Mnuchin decided silence was his best option after losing an internal White House battle last month to protectionists as the president considered the China tariffs, they said. The Treasury secretary sought to persuade Trump to take a more measured approach in negotiations. Instead, the president escalated the dispute — first slapping penalties on $50 billion in Chinese goods last week, then threatening late Monday to impose tariffs on as much as $200 billion more if the country retaliates for the first round.
Silence is Mnuchin’s way of balancing loyalty to the president while preserving his personal credibility with financial markets, without publicizing disagreements among administration officials, the people said. They asked not to be identified describing his thinking.
His decision cedes at least temporarily the Treasury secretary’s traditional role as chief economic spokesman for the administration to people more willing to take up the cudgel against China and other U. S. trading partners, such as U. S. Trade Representative Robert Lighthizer and White House trade adviser Peter Navarro. But by avoiding an open break Mnuchin hopes to maintain influence with the president, perhaps yet giving him the opportunity to persuade him to change course, the people said. Market Worries
Mnuchin’s voice has been largely absent as investors unload riskier assets amid signs that the trade war is deepening. The S&P 500 sank the most in three weeks after Trump’s announcement of further tariffs on Monday and Beijing’s promise to retaliate. Stocks fell across Europe and Asia, where Chinese shares plunged after reopening following a holiday.
