Rand gains by more than 1% after U.S. delays some China tariffs

Cornelia Mascio
Agosto 13, 2019

That eased the concerns of a trade war-driven slowdown in global growth that have dominated two weeks of volatile trading on Wall Street, since President Donald Trump announced a new round of tariffs on August 1.

The cellphones, toys and other products subject to a delayed impact would still be tariffed starting December 15, the USTR said. Shares of Apple, Mattel and shoe brand Steve Madden shot up.

The U.S. trade representative said the new 10% tariffs - part of a sharp escalation in Trump's trade war with China - would take effect as planned on September 1. The Office of the U.S. Trade Representative says the rest of the tariffs on Chinese imports scheduled to kick in on September 1 will continue.

Earlier on Tuesday, China's chief trade negotiators, Vice Premier Liu He and Commerce Minister Zhong Shan, spoke to their United States counterparts, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.

A 4.8 per cent jump in Apple shares and a rise in chip stocks pushed the technology sector, traditionally among the most sensitive to trade issues, 2.33 per cent higher.

The USTR plans to publish a full list of the products later Tuesday.

U.S. President Donald Trump on Tuesday cited China for not following through with expected large purchases of U.S. agricultural products but appeared hopeful that Beijing's stance could change.

Many U.S. retailers and other businesses had complained that the new tariffs would make household products more expensive for American consumers. "Maybe this will be different!"

By mid-morning USA eastern time, the Dow Jones Industrial Average was up 429.49 points, or 1.66%, at 26,327.20, the S&P 500 was up 46.24 points, or 1.60%, at 2,929.33. The Nasdaq was up 165.16 points, or 2.10%, at 8,028.57.

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