US delays tariffs on some Chinese goods, drops others

Wednesday, 14 Aug, 2019

Other products that will have tariffs delayed until December 15 include "computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing", the USTR said in a statement. Furthermore, other goods are being excluded from the tariff list entirely due to "health, safety, national security and other factors".

The USTR did not explain why it had chose to delay tariffs on those goods, saying only that it was "part of USTR's public comment and hearing process".

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.

The 10% tariff will still land September 1 on other consumer imports from China, including some clothing, footwear, and toys. China has refused to fulfill its pledge to start buying more US farm products, for instance. But the delay reveals an unwillingness by Trump to raise the cost of products many Americans find essential, suggesting he's bluffing about ever imposing such a tariff.

China retaliated by ordering a halt to purchases of American agricultural products.

The U.S. will not impose an additional 10 percent tariff on products from China including smartphones, laptops and monitors in September, delaying the tariffs until at least December 15, the U.S. government trade representative announced Tuesday.

In earlier rounds of tariffs, Trump eventually slapped 25% duties on about $250 billion of imports from China, but many of those goods were machinery and industrial parts used for production.

For instance, Xi Jinping and the other Communist Party officials have surely noticed Trump's tirades about the Federal Reserve every time the stock market dips.

"As usual, China said they were going to be buying "big" from our great American Farmers", President Trump wrote.

On Sunday, economists at Goldman Sachs downgraded their economic forecasts, citing the impending tariffs on consumer goods.

That is one of the issues presenting itself as an obstacle in trade talks, and which President Donald Trump emphasized in a Tuesday morning tweet.

Goldman said the tariffs on China have increased uncertainty for businesses, which will likely cause them to pull back on hiring and investing in new equipment or software. In the past week tensions have escalated further as the U.S. Treasury Department formally labeled China a currency manipulator.