United States postpones tariffs on some Chinese products, including cell phones & laptops

Cornelia Mascio
Agosto 13, 2019

The delay could be calculated to avoid adding tariffs to popular consumer items during the busy back-to-school and holiday shopping seasons.

Major indexes rose sharply Tuesday after the USA government said it would hold off on tariffs of Chinese imports of mobile phones, toys and several other items on holiday shopping lists until December 15.

Apple was not the only company to spike off the news, with the Philadelphia Semiconductor Index jumping as much as 2.6% in morning trading.

The exemptions, combined with renewed talks with China, suggest Trump may be willing to compromise.

The Office of the U.S. Trade Representative said tariffs would also be delayed until December 15 on "computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing".

"The overall China tariff/demand situation represents a $20-$25 overhang on Apple shares and will remain a lingering cloud over the story in the near-term", Ives wrote in a note published August 13, prior to the news about the tariff delay.

Investors are taking the move as a sign of optimism for negotiations, but there may be far more cynical factors at play.

Previous tariffs were very targeted on some sectors, but the latest tariff move would have hiked prices on a wide variety of cheap consumer goods that US shoppers buy from China en masse.

The administration also announced that certain products will be permanently removed from the tariff target list for reasons of health, safety and national security. Goldman Sachs said on Sunday fears of the US-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election.

Those products include "cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing", the office said in a news release. These products accounted for a combined $98 billion of Chinese imports in 2018, according to a Reuters analysis of US Census bureau data. The office plans to conduct an exclusion process for products subject to the additional tariff.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE