Stocks rebound after United States agrees to delay tariffs on cellphones, laptops

Stocks rebound after United States agrees to delay tariffs on cellphones, laptops

Stocks rebound after United States agrees to delay tariffs on cellphones, laptops

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until December 15, while other products were being removed from the new China tariff list altogether.

The tariff will now be delayed until December 15, and "USTR intends to conduct an exclusion process for products subject to the additional tariff", the office said.

The products include mobile phones, laptops, video game consoles, some toys, computer monitors, and certain footwear and clothing.

NEW YORK, Aug 13 (Reuters) - U.S. and European stocks jumped, the dollar strengthened and bond prices rose on Tuesday on news U.S. and Chinese officials held a telephone call to discuss tariffs and planned another call in two weeks, easing concerns about the U.S. -Sino trade war. The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys.

The Trump administration is postponing some of its new tariffs on Chinese imports - a significant retreat in the trade war that has rattled financial markets on both sides of the Pacific.

Trump went on to say the USA has collected close to $59 billion in tariffs thus far from China, which he called "amazing". USA importers can apply for tariff exemptions. It's expected that the increased tariffs will impact around $300 billion worth of imports from China.

The announcement came minutes after China's ministry of commerce said that the vice-premier Liu He had held a phone call with USA trade officials. Trump can try to claim the holiday delay is also an "olive branch" to the communist vacationers, but that's unlikely to fool anyone other than Fox News diehards.

U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin held discussions with Chinese Vice Premier Liu He on Tuesday, a spokesperson for the USTR said.

Trump has now partially reversed himself on the 10% tariff, without any corresponding concession from China. So far they have not done what they said.

"Speak to businesses and it's the uncertainty - not knowing if a tweet from President Donald Trump will break a crucial supply chain or block access to a market - that's weighing on investment and hiring decisions".

Despite the exchanges between the USA and Chinese negotiators, the prospects for negotiations remain dim.

One casualty of the trade war with China has been American farmers, who have suffered due to China not purchasing crops at normal levels.

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