Mnuchin spoke on Sunday after the world’s two largest economies agreed to drop their tariff threats while they work on a wider trade agreement.
Speaking on 'Fox News Sunday', Mnuchin said: "We're putting the trade war on hold. But president Trump could always decide to put the tariffs back on if China doesn’t go through with their commitments."
Mnuchin said that the two sides agreed on a framework for reducing the US trade deficit with China and protecting US technology during high-level talks between the two sides on Thursday and Friday, although more meetings are required to finish the deal.
Last month, the US and China announced a series of tariffs that if implemented could have triggered a full-blown trade war. The Trump administration announced 25-percent tariffs on more than a thousand Chinese products.
The Chinese responded swiftly with proposals for the same tariffs on 106 American products including soybeans, cars and chemical products.
The prospect of a trade war between the world’s two biggest economies has sent shivers through financial markets in recent weeks and raised fears that the confrontation could provoke a damaging trade war.
