Global stock markets rebound after US President Trump delays some China tariffs
United State President Donald Trump has said China has not been buying the US farm products.
Trump accused Beijing of continuing to renege on its commitment to buy US agricultural goods.
"As usual, China said they were going to be buying 'big' from our great American Farmers. So far they have not done what they said. Maybe this will be different!" Trump tweeted on Tuesday.
"As usual, China said they were going to be buying 'big' from our great American Farmers. So far they have not done what they said. Maybe this will be different!" Trump tweeted on Tuesday.
The US Trade Representative office said on Tuesday that new tariffs on certain items would be delayed until December 15, while other products were being removed from the new China tariff list altogether.
The products in the group that will have tariffs delayed include “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the USTR said.
Last month, President Donald Trump announced a new round of tariffs of 10% on $300 billion of Chinese imports that eluded duties in the earlier round announced in May. The USTR published a list of products in May that may be subject to an addition 10% tariff and that list is now being edited to avoid health and security factors.
Delays on centerpiece technology items like cellphones and laptops is boosted tech stocks and distributors of technology items. Apple shares traded nearly 5% higher on the news and Best Buy soared more than 8%.
The footwear and apparel tariffs delay boosted retailers. Nike, Kohl’s, and Nordstrom were all trading higher following the announcement. The retail ETF the XRT rose over 4%, on pace for its best day since December of 2018.
The USTR did not specify which items will be removed from the list but it added that it will conduct an “exclusion process for products subject to additional tariff.”
Separately, China’s Commerce Ministry said Vice Premier Liu had a phone call with U.S. Trade Representative Robert Lightizer and U.S. Treasury Secretary Steven Mnuchin. China said they agreed to another call in two weeks.
The next round of trade talks were expected to take place in September, after the tariffs went into place.
Markets rallied on the new tariff news. The Dow Jones Industrial Average rose 500 points, while the S&P 500 was 1.5% higher and the Nasdaq rose 1.9%.
Uncertainty around the trade war has weighed on the markets, causing stocks to have their worst day of the year on August 5, when China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S.
Here’s the full statement from the USTR:
Source
Markets rallied on the new tariff news. The Dow Jones Industrial Average rose 500 points, while the S&P 500 was 1.5% higher and the Nasdaq rose 1.9%.
Uncertainty around the trade war has weighed on the markets, causing stocks to have their worst day of the year on August 5, when China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S.
Here’s the full statement from the USTR:
USTR Announces Next Steps on Proposed 10 Percent Tariff on Imports from China
Washington, DC - The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.
On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1.
Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.
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. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
USTR intends to conduct an exclusion process for products subject to the additional tariff.
The USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.
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