Trump Administration Delays Tariffs on Additional Chinese Imports Citing Health, Security Risks; Trump Signals Move Will Force China’s Hand to Increase U.S. Agricultural Spending

  • The Trump administration announced on Tuesday that the additional 10% tariff on remaining Chinese imports will be delayed until December 15, and some products will be removed from the new list of tariffs.
  • The tariffs were originally supposed to go into effect on September 1, but the U.S. Trade Representative (USTR) office cited the delay is due to security and health factors. The delay also helps to ease concerns about increased prices during the shopping season.
  • The USTR said “the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and certain toys.”
  • According to reports, “although most retailers would have had their holiday merchandise in stores even before the earlier September deadline, some might have faced the tariffs for fill-in orders late in the holiday shopping season.”
  • President Trump made the surprise announcement on August 1 that he planned to implement these additional tariffs for what he called China “not following through on promises to buy more American agricultural products.”
  • The announcement sent the stock market in a tailspin with the S&P dropping more than 4% this month.
  • On news that the tariffs would be delayed, stock markets rallied with the Dow rising 400 points, the S&P climbing 1.5% higher and the NASDAQ increasing 1.9%.
  • On Tuesday, Trump tweeted: “As usual, China said they were going to be buying “big” from our great American Farmers. So far they have not done what they said. Maybe this will be different!”
  • Also, “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.”

Reference Links

  • Reuters: U.S. to delay China tariffs on some products, including laptops, cell phones READ
  • BBC: Trump delays some tariffs on Chinese imports READ
  • The Guardian: Trump officials announce delays on China tariffs – live READ
  • CNBC: US delays China tariffs for some items including cellphones, removing other products from list READ

Be the first to comment

Leave a Reply

Your email address will not be published.