The United States Trade Representative office has cut items from the list of Chinese-made products that had faced new tariffs next month, citing factors including health, safety and national security concerns.
The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and “certain toys.”
Earlier this month, President Donald Trump announced a new round of 10% tariffs on $300 billion worth of Chinese imports that eluded duties.
Markets rallied on the news. The Dow Jones Industrial Average rose 400 points, while the S&P 500 was 1.5% higher and the Nasdaq rose 1.9%.
Delays on centerpiece technology products boosted tech stocks and distributors of technology items. Apple shares traded nearly 5% higher on the news… Separately, China’s Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin and they agreed to talk again in two weeks.
MacDailyNews Note: The United States Trade Representative’s statement, verbatim:
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 in the Federal Register as soon as possible additional details and lists of the tariff lines affected by this announcement.