US Delays Tariffs For The Holiday Shopping
The US is holding off on implementing tariffs on some Chinese imports which include laptops, cellphones, some toys, some particular clothing and footwear, video game consoles and computer monitors until December 15 so American consumers wouldn't get hit at Christmas.
On early Tuesday, China's trade negotiators Vice Premier Liu He and Commerce Minister Zhong Shan spoke on the phone with their US counterparts, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.
That phone call also aired the Chinese officials' "solemn protest" on the tariffs that will get implemented on September 1.
The United States Trade Representative (USTR) made the surprise announcement on the tariffs' hold off after this particular call.
With the growing worries on the global economic slowdown, this announcement was indeed good news.
It was on August 1 that Mr. Trump said that due to Beijing not buying more American agricultural products, a 10% tariff on $300bn Chinese goods would get implemented.
However, his Twitter feed on Tuesday gave a clue that China's not buying "big" from US farmers is about to change.
As expected, investors' share prices reflected the good news triggering a global economic growth after weeks of volatile trading.
Technology investors pushed an index of chip stocks up 2.8%.
Retailers and industrial shares followed with General Electric going up 4.4%.
Dow Jones and S&P 500 ended at 1.4% ahead.
Nasdaq ended with a good 1.9% increase while Apple stocks rose at 4%.
The UK stocks also welcomed the good news with Glencore mining going up and ending at 2.3%.
However, analysts like Elena Duggar, associate managing director at the credit rating agency Moody's, said that the "seeming de-escalation" could "be a temporary reprieve."
The delay in tariffs also comes from the mounting pressure from businesses making clear that the current US administration's trade issues with China are hurting them.
The New York Times reported that the 10% tariff originally scheduled for September 1 will now be implemented on December 15 with a revamped list after having other Chinese products totally exempted.
Twenty-five types of products, including shipping containers, certain fish, religious literature, car seats, and cranes are going to get exempted from the tariff because of "health, safety, national security, and other factors."
Mr. Trump told reporters that the new tariffs will in no way hit Americans but "In case they might have an impact on people" they "delayed it so they won't be relevant" during the holiday shopping season.