Published: Wed, August 14, 2019
Worldwide | By Lisa Hogan

Trump Administration Delays Some China Tariffs

Trump Administration Delays Some China Tariffs

In response, the National Retail Federation, an outspoken tariff opponent, said, "We are pleased the administration is delaying some tariffs ahead of the holidays and acknowledging the impact on American consumers".

In a surprise reversal, the administration delayed tariffs on certain goods imported from China until December 15 to prevent an impact on USA holiday sales.

Instead, the additional levy on thousands of consumer products imported from China - including mobile phones, laptops, video game consoles, clothing and footwear - will now take effect from December 15.

Trump announced the September 1 tariffs less than two weeks ago, blaming China for not following through on promises to buy more American agricultural products during talks in Shanghai at the end of July.

"They said they are going to buy farm products". TF International analyst Ming-Chi Kuo, who always appears to have his finger on Apple's pulse, said that the company was planning to "absorb most of the additional costs" of the tariffs.

Since Trump's August 1 tweets threatening the new tariffs, the United States benchmark S&P 500 stock index has dropped more than four percent.

Mr Trump's decision to blink first has also reignited investors' hopes of a US-China trade deal, and that a much-feared recession from a protracted trade war might be avoided.

Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

The administration also announced that certain products will be permanently removed from the tariff target list for reasons of health, safety and national security. As we reported earlier, these eventual Chinese tariff expansions could increase the cost of video game consoles in the United States by an estimated 25%. "Maybe this will be different!" -China trade war picture deteriorated following a drop in the value of China's yuan currency.

The announcement comes amid growing concerns about a global economic slowdown.

"For Apple, which has become the poster child of this US/China UFC trade battle, this is a major shot in the arm for the bulls as importantly Cook & Co. will be facing no tariff noise/costs when the trifecta of iPhones launch in the September time-frame", Ives wrote.

On Sunday, economists at Goldman Sachs downgraded their economic forecasts, citing the impending tariffs on consumer goods. As a result, China is no longer the top trading partner of the US.

Additional details and lists of the specific product types affected by the announcement are due to be published by USTR later.

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