U.S. trade negotiations with the European Union formed the basis of a "real agreement" that will reduce tensions, Treasury Secretary Steven Mnuchin told CNBC on Thursday.

Mnuchin spoke a day after the White House announced it had reached a general agreement with the European Union to work toward zero tariffs and reform the World Trade Organization. President Donald Trump and European Commission President Jean-Claude Juncker held talks Wednesday on the trade dispute.

In the wake of those negotiations, Mnuchin said the long-term goal is an elimination of all tariffs, and in the nearer term no additional tariffs and a removal of duties on steel and aluminum.

"I think we're well on our way to resolving a lot of these trade issues," he said.