The United States expects China to fulfil the trade deal between the two countries, and Beijing will face dire results if it reneges on its promises, US Treasury Secretary Steven Mnuchin warned in an interview with Fox Business on Monday.
"It was signed off on by President Xi and President Trump, and I have every reason to expect they honor this agreement, and if they (the Chinese) don't, there would be very significant consequences in the relationship and in the global economy as to how people would do business with them.”
Following months of trade war, the US and China signed the first phase of a multibillion-dollar trade deal in January, which saw Washington cut some of its tariffs on Chinese goods in exchange for Beijing's promise to buy more US farm and manufactured goods.
On Coronavirus-Linked Travel Restrictions
Mnuchin also commented on chances for travel restrictions to be lifted in the near future.
He said that it is too soon to say if international travel will be resumed this year.
After the World Health Organisation (WHO) declared the COVID-19 outbreak a pandemic on 11 March, many governments imposed travel restrictions and bans as part of measures to contain the spread of the deadly virus.
As of 4 May, the number of confirmed coronavirus cases globally stood at 3,407,747, with 238,198 fatalities, according to the WHO.
View on Oil Price Direction
The US Secretary of the Treasury said he expects oil markets to rebound, adding that the Trump administration is looking for more storage capacity.
Oil prices dropped on Monday amid concerns over storage capacity and risks of a new round of a tariff war between the US and China.