Trump delays new Chinese tariffs; stock market APPROVES

Trumps has delayed his new tariffs against China until just before Christmas. They were supposed to go into effect next month:

CNBC – The United States Trade Representative office said Tuesday certain items were being removed from the new China tariff list because of “health, safety, national security and other factors” while tariffs on other items would be delayed until December 15.

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.

The stock market clearly approves of the delay:

Apple shares traded higher on the news. Best Buy, Nike, Kohl’s and other retailers were also trading higher.

Markets rallied on the new tariff news. The Dow Jones Industrial Average rose 400 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.

CNBC points out that China is in talks with the US:

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.

I hope it’s not separate, actually. I’d like to think that China’s willingness to negotiate is why Trump would make such a delay and that there’s a light at the end of this trade-war tunnel.

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