Published: Tue, August 13, 2019

USA delays 10% Chinese tariff on toys, electronics, games and clothes

USA delays 10% Chinese tariff on toys, electronics, games and clothes

The US is delaying imposing tariffs on some imports from China until 15 December because of "health, safety, national security and other factors".

The move comes after a phone call between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and top Chinese negotiator Liu He in which the parties agreed to pick up negotiations by phone within two weeks, according to a statement from the Chinese Commerce Ministry. Wall Street's three main share indexes rose more than 1.5%.

Trump tweeted. His comments come after his administration delayed a 10% tariff on certain Chinese imports, including technology products and clothing, until mid-December.

CNBC notes that delays have boosted tech stocks, with Apple shares trading almost 5% higher on the news and Best Buy also up by more than 8%.

The exemptions, combined with renewed talks with China, suggest Trump may be willing to compromise. "Maybe this will be different!"

However, the United States Trade Representative (USTR) said Tuesday that some electronic devices made in China are getting a delay and other items have been removed from the tariff lists altogether. Goldman Sachs said on Sunday fears of the U.S.

That eased the concerns of a trade war-driven slowdown in global growth that have dominated two weeks of volatile trading on Wall Street, since President Donald Trump announced a new round of tariffs on august 1.

Cell phones, laptop and tablet computers, toys and video game controllers were among the top four product categories in the proposed $300 billion list of products targeted by the latest 10% tariff.

Trump had also personally criticized Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl amid an opioid overdosing crisis in the United States.

Previous tariffs were very targeted on some sectors, but the latest tariff move would have hiked prices on a wide variety of cheap consumer goods that US shoppers buy from China en masse.

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