Trump's second term will be an "evolution," Mnuchin says
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Former Treasury secretary Steven Mnuchin talks to Steve Clemons in Doha. Photo: Web Summit
The second Trump administration is going to be "an evolution" of the first, former Treasury secretary Steven Mnuchin told Axios in Doha on Tuesday.
Why it matters: Global businesses and investors are looking for clues as to whether the Trump of 2025 will impose seismic changes on the global economy.
- Mnuchin seems to think he won't.
What they're saying: "I don't think a 10% tariff would be problematic for inflation," Mnuchin earlier said on stage at a Web Summit event in Qatar, adding that if the tariff was truly universal, it could raise $2.5 trillion over 10 years.
- "If you put 25% tariffs on things," he added, "that's where I think you begin to worry more about the economic impact."
- Trump imposed, and then paused, 25% tariffs on Canada and Mexico, and has announced 25% tariffs on steel and aluminum imports as well.
Between the lines: Mnuchin, in his event comments, poured cold water on recent rumors of a supposed "Mar-a-Lago accord" that could dramatically weaken the dollar and force U.S. trading partners to exchange their Treasury bonds for non-marketable zero-coupon securities.
- "Asking people to take very low interest rate hundred-year bonds is not something that's going to be appealing," he said. "I don't think that sets the right tone for the market."
- "We need a stable dollar," stressed Mnuchin on stage. "I don't think the dollar will weaken."
Where it stands: Mnuchin did not address how much interaction he has with the current Trump administration, although he did confirm he's still interested in buying TikTok.
The bottom line: Mnuchin was at pains to reassure the international audience that Trump was not taking a wrecking ball to the international order.
- A lot of the talk about deteriorating relations between the U.S. and Europe is "overblown," he said on stage. "These are some of our most important allies, and I think they will continue to be."
