TRADE: US delays import tariffs on China

TRADE: US delays import tariffs on China By: Ben Hedges – US Correspondent The United States Trade Representative (USTR) announced yesterday [Tuesday, 13 August 2019] the next stages of implementing the latest round of Tariffs on China by imposing additional tariffs of 10 percent on approximately $300Bn of Chinese imports, as announced by US President Donald Trump on 1st August. The announcement was released literally minutes after China’s Ministry of Commerce said Vice Premier Liu He had just had a “constructive” phone call with US trade officials. The timing of the latest announcement has been seen by many commentators as a “kick in the teeth” for China. The new tariffs will take effect on September 1 against the USTR published list of products [below] which was released last May 17, however, certain products are being removed from the tariff list based on health, safety and bizarrely national security “among other key factors” and will not be subject to the additional tariffs. Itt has also been determined that the new tariffs on certain niches, for example, cell phones, laptop computers, video game consoles, toys, computer monitors, and certain items of footwear and clothing, will be delayed until December 15. US President Donald Trump, told the news media that the delay was in part to avoid hitting US shoppers this Christmas. The announcement caught the markets “napping” however it still sparked a welcome rally in share prices with technology investors welcoming news of the exemptions. On Wall Street, the three main equity indexes were up more than 2% at one point. The Dow Jones and S&P 500 closed up 1.4%, while the tech-centric NASDAQ closed up 1.9% – predominantly due to a 4% rise in Apple. In the UK, stocks exposed to global trade also rose. List 4A [Effective September 1, 2019] List 4B [Effective December 15, 2019]