"I think our projections have been reduced, because of Boeing and other impacts, so it will be lower," Mnuchin said. "We would have hit 3% ... There's no question that the virus will have some impact on global growth and some impact on the U.S."
|BA||THE BOEING CO.||244.03||-4.17||-1.68%|
He said there are many unknowns about coronavirus' impact but that "after another two weeks we'll have a much better way to model how this virus spreads."
Mnuchin said in mid-January Boeing would have an outsized impact on the U.S. economy, before the coronavirus outbreak was dominating headlines.
Mnuchin's claims come after President Trump's chief economic adviser Larry Kudlow said exports in the "phase one" trade deal with China will be slowed down because of the coronavirus on "Mornings with Maria" on Tuesday.
"It is true the 'phase one' trade deal, the export boom from that trade deal, will take longer because of the Chinese virus," Kudlow said. "On the other hand, the North American trade deal, USMCA, is going to unlock tremendous investment ... Manufacturers will benefit."
Chinese Ambassador Huang Ping responded to the comments Tuesday, saying he hopes the virus will not affect the trade deal. Huang said he did not know if China would use a clause about unforeseeable events in the trade deal to help the country meet its commitments.