Mr Mnuchin told a House Financial Services Committee hearing on Wednesday that US companies should be able to source some of their supplies from elsewhere to keep costs down, but he appeared to caution against any hope for a swift resolution to the trade conflict.
The Treasury Secretary told the committee that Mr Trump and Chinese President Xi Jinping were likely to meet at the G20 leadership summit in Osaka in the final week of June, but he appeared to be more negative about the prospect of an agreement between the two on trade.
“We were beginning to send out the date for the two presidents to meet and have a signing ceremony,” he said. “Unfortunately, China has taken a big step backward.”
Mr Morrison is expected to attend the leaders’ summit in Osaka and may hold talks at the event with Mr Trump and Mr Xi.
Mr Frydenberg said his conversation with Mr Mnuchin was “constructive and productive”.
“We agreed to meet in Japan at the G20 Finance ministers meeting in a few weeks time,” he said.
“We also talked about global trade tensions in particular the imposition of tariffs by the US and China.
“I emphasised how important free trade was to Australia and that our consistent message is that we hope trade disputes, notwithstanding the legitimate issues at play, are resolved as amicably as possible for the benefit of the global economy.”