Wall Street Jumps Sharply After U.S. Delays Some Trade Tariffs
Aug 14 2019
The US Trade Representative's (USTR) office today said that they have made a decision to delay additional 10% tariffs on a list of Chinese imports until December 15 ahead of the next round of face-to-face talks in September in Washington. The US still plans on imposing the 10 percent tariff on hundreds of other Chinese imports this September.
Further, as part of USTR's public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. However, the USTR said that many items, including cellphones, laptops, video game consoles, and certain shoes and clothes, would not be hit with the new duties until mid-December.
Wall Street snapped a two-day losing streak - and sent shares of Apple soaring - after the U.S. said it will delay imposing tariffs on certain items that were supposed to take effect on September 1.
If video game console prices end up increasing due to the proposed tariffs, console manufacturers might have to take production outside of China to ensure consumers aren't negatively impacted.
Responding to pressure from businesses and growing fears that a trade war is threatening the US economy, the Trump administration is delaying some import taxes it planned to impose on Chinese goods and is dropping others altogether.
On Sunday, economists at Goldman Sachs downgraded their economic forecasts, citing the impending tariffs on consumer goods.
Investors welcomed news of the tariff delay.
Shortly after the delay announcement Tuesday, Trump criticized China.
"As usual, China said they were going to be buying "big" from our great American Farmers". -China trade war. A team from China is expected to come to Washington next month to resume negotiations.
Tariffs on electronics will get a short reprieve according to the United States Trade Representative.
It's unclear if the Chinese tariff expansions will end up causing video game consoles to increase in price, but us shoppers can at least take solace in knowing that they won't be negatively impacted by that this holiday season.
The U.S. Trade Representative's Office will publish additional details and lists of the specific product types impacted by the announcement.
"They really would like to make a deal", Trump said Tuesday before boarding a helicopter in Morristown, New Jersey.