"The president has asked us to start working on what we call tax 2.0, and that will be additional tax cuts", Mnuchin told CNBC during an interview at the World Economic Forum in Davos. The U.K. plans to release a series of documents setting out its aims for trade deals with the European Union, U.S. and other countries at the start of February.
It comes after France agreed to delay their plans to introduce a digital tax on big tech firms like Google and Facebook, after Washington threatened to retaliate with a levy on French cheese and champagne sectors.
Austria introduced its own digital tax in January, but France has suspended its plans.
"If people just want to just arbitrarily put taxes on our digital companies, we'll consider arbitrarily putting taxes on vehicle companies", said Mnuchin.
"That's obviously an aggressive timeline", Mnuchin said on the sidelines of the World Economic Forum in Davos.
But Chancellor Sajid Javid insisted it will go ahead as planned in April.
Greta Thunberg should go away and study economics before lecturing investors, the USA treasury secretary has said.
"We think the digital tax is discriminatory in nature... if people want to arbitrarily put taxes on our digital companies we'll consider arbitrarily putting taxes on vehicle companies", said Secretary Mnuchin in response.
"Brussels is expected to push for European Union member countries to get access to British fishing waters, but the prime minister said" we'll make sure we eventually become a different coastal country " and have complete authority within the UK's" spectacular marine riches".
The US Department of Justice recently said the White House could use its executive privilege to decline to release a Commerce Department report advising president Trump on proposed tariffs on imports of automobiles and auto parts.
UK finance minister Sajid Javid, who was also on the panel, stated he prepared to go ahead with the digital services tax in April, even as the nation looks forward to negotiating a new free trade deal with the United States after Brexit.
USA tariffs would also negatively affect the industry.
Possible tariff reductions were left to later negotiations, known as "phase two". They will cover a host of hard issues at the heart of the trade battle, including Chinese subsidies to domestic companies and Beijing's oversight of Chinese state-owned firms. Most trade experts had expected the talks to run beyond that date, given the complexity of the issues to be addressed.
Mr Mnuchin was clear yesterday that the USA administration remains ardently against the tax. "If we get it done before the election, good".
The prospect of a trade war with the USA is likely to spark major concerns in the UK's manufacturing sector. "It's about free, fair and balanced trade". "We expect to complete that with them [UK] this year", he added.
Mr Mnuchin, sitting together with Mr Javid in a Davos occasion, stated:"We are extremely much looking forward to some brand new trade agreement this year with the United Kingdom, it is a huge priority for us".