Trump delays tariffs on Chinese cellphones, laptops, toys; markets jump

[webfact]

Trump delays tariffs on Chinese cellphones, laptops, toys; markets jump

By David Shepardson and David Lawder

 

FILE PHOTO: U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque/File Photo

 

WASHINGTON (Reuters) - U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

 

The delay which, affects about half of the $300 billion target list of Chinese goods - along with news of renewed trade discussions between U.S. and Chinese officials - sent stocks sharply higher and drew cautious relief from retailers and technology groups.

 

Trump's 10% tariffs will be effective from Dec. 15 for thousands of products including clothing and footwear, possibly buttressing the holiday selling season from some of the fallout from the protracted trade spat between the world's two largest economies.

 

"We're doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers," Trump told reporters in New Jersey. "Just in case they might have an impact on people, what we've done is we've delayed it so that they won't be relevant to the Christmas shopping season."

 

The U.S. Trade Representative's Office announced the decision just minutes after China's Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

 

President Trump says the delay in new tariffs on some products imported from China is designed to protect American consumers from higher prices this Christmas shopping season. Rough Cut (no reporter narration)

 

Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

 

Trump has said the two sides may still meet in early September as scheduled.

 

APPLE SHINES

The delay in tariffs on a substantial portion of a $300 billion list of remaining Chinese imports sent U.S. stocks surging, after steep losses in the past week, with the Standard & Poor's 500 <.SPX> up 1.5% and the Nasdaq Composite <.IXIC> gaining nearly 2%.

 

Shares of market bellwether Apple Inc <AAPL.O> soared 4.2% on news that its core iPhone, tablet and laptop computer products would be spared from tariffs for the time being.

 

But the Trump administration still plans to impose 10% tariffs on thousands of Chinese food, clothing and other consumer electronics products beginning Sept. 1.

 

Among these are Chinese-made smartwatches from Apple and Fitbit <FIT.N>, smart speakers from Amazon.com Inc <AMZN.>, Google <GOOGL.O> and Apple, and Bluetooth headphones and other devices, a category estimated at $17.9 billion last year by the Consumer Technology Association.

 

Flat screen televisions from China, a category worth $4.5 billion, also will face 10% tariffs on Sept. 1 after being spared from Trump's first round of tariffs more than a year ago.

 

Live animals, dairy products, skis, golf balls, contact lenses, lithium ion batteries and snowblowers will also get tariffs on Sept. 1

 

A trade group representative said USTR informed them that it opted to delay tariffs on items where China supplies more than 75 percent of total U.S. imports. Product categories where China supplies less than 75 percent will still face tariffs on Sept. 1, the representative said, speaking on condition of anonymity because the information was not publicly released.

 

According to U.S. Census data, China supplied 82 percent of U.S. cell phones and 94.5 percent of U.S. laptops in 2018.

 

Based on a Reuters analysis, the delay could extend to around half of the $300 billion list of remaining Chinese imports. Chinese imports subject to the tariffs on Dec. 15 totaled about $156 billion last year, according U.S. Census bureau data.

 

While most retailers would have stocked their holiday merchandise before the September deadline, some might have faced the tariffs for fill-in orders late in the holiday shopping season.

 

Still, the Retail Industry Leaders Association said "removing some products from the list and delaying additional 10% tariffs on other products, such as toys, consumer electronics, apparel and footwear, until Dec. 15 is welcome news as it will mitigate some pain for consumers through the holiday season."

 

The Consumer Technology Association applauded the delay on some items, but added: "Next month, we’ll begin to pay more for some of our favorite tech devices – including TVs, smart speakers and desktop computers. The administration should permanently remove these harmful tariffs and find another way to hold China accountable for its unfair trading practices."

 

The 21-page-list of products that will not get hit with tariffs until December also includes baby monitors and strollers, microwaves, instant print cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, nativity scenes, fishing reels, paint rollers and food products.

 

A separate group of products will be removed from the tariff list altogether, the USTR said, "based on health, safety, national security and other factors." It did not immediately identify these items.

 

Trump announced the Sept. 1 tariffs less than two weeks ago, blaming China for not following through on promises to buy more American agricultural products during talks in Shanghai at the end of July. That move was met with a drop in China's yuan currency a few days later, prompting the Trump administration to declare Beijing a currency manipulator and sending markets tumbling for several days last week.

 

Since Trump's Aug. 1 tweets announcing the new tariffs, the U.S. benchmark S&P stock index has dropped more than 4%.

 

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

 

In a sign the administration may be expecting something in return, Trump tweeted on Tuesday: "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!" Trump tweeted.

 

Trump's tariff delay comes amid growing concerns about a global economic slowdown. Goldman Sachs said on Sunday fears of the U.S.-China trade war leading to a recession were increasing and Goldman no longer expects a trade deal between the two countries before the 2020 U.S. presidential election.

 

Trump has also personally criticized Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl amid an opioid overdosing crisis in the United States.

 

The USTR office plans to conduct an exclusion process that could allow more items to be removed from the 10% tariff list.

 

(Reporting by David Shepardson, David Lawder, Makini Brice and Susan Heavey in Washington; additional reporting by Jeff Mason in Morristown, New Jersey; Writing by David Lawder; editing by Tim Ahmann, Marguerita Choy and Cynthia Osterman)

 

-- © Copyright Reuters 2019-08-14

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[Chomper Higgot]

A pattern is emerging.

 

Don’t rule out market manipulation.

 

[Cryingdick]

19 minutes ago, Chomper Higgot said:

A pattern is emerging.

 

Don’t rule out market manipulation.

 

 

Of course he is driving the market. I think this is pretty widely known.

[Chomper Higgot]

Just now, Cryingdick said:

 

Of course he is driving the market. Duh.

Right, so deny the market moves that follow Trump’s statements with respect to his trade war with China.

 

Doh!

[Cryingdick]

2 minutes ago, Chomper Higgot said:

Right, so deny the market moves that follow Trump’s statements with respect to his trade war with China.

 

Doh!

 

The markets move every tweet he makes. This is hardly some big surprise. Traders are actually beginning to trade the market based upon his tweets. Trump has the market on a string like a yoyo.

[bristolboy]

So once again Trump backs down on his threats. Paper tiger much? 

[neeray]

That man is a genius !!! (Holy Mother, did I actually type those words?)

 

But despite his back peddling (again), he did the right thing for once (thus, genius). Not because he gives a rats ass about Christmas and the price of toys, but because he seems to have actually listened to more knowledgeable persons and finally understood the havoc that his additional tariffs could have wreaked on the world economy.

 

(No, Cryingdick, I do not have a link for this. Yes, Cryingdick, this is just my opinion. I am entitled to it)

[Cryingdick]

3 minutes ago, neeray said:

That man is a genius !!! (Holy Mother, did I actually type those words?)

 

But despite his back peddling (again), he did the right thing for once (thus, genius). Not because he gives a rats ass about Christmas and the price of toys, but because he seems to have actually listened to more knowledgeable persons and finally understood the havoc that his additional tariffs could have wreaked on the world economy.

 

(No, Cryingdick, I do not have a link for this. Yes, Cryingdick, this is just my opinion. I am entitled to it)

 

I am not the guy who constantly heckles people for links. 

 

This is a good set up. He is making it so Christmas earnings will come in strong. This will be the beginning of the next leg up. He could also afford to look weak because let's face it with HK going on China has it's problems right now.

 

 

[AlexRich]

1 minute ago, Cryingdick said:

 

I am not the guy who constantly heckles people for links. 

 

This is a good set up. He is making it so Christmas earnings will come in strong. This will be the beginning of the next leg up. He could also afford to look weak because let's face it with HK going on China has it's problems right now.

 

 

Sure, I mean, that was the plan all along ... wasn’t it? ????

[Cryingdick]

1 minute ago, AlexRich said:

Sure, I mean, that was the plan all along ... wasn’t it? ????

 

It's a pretty basic premise fi you understand how earnings reports work.

[bristolboy]

3 minutes ago, Cryingdick said:

 

I am not the guy who constantly heckles people for links. 

 

This is a good set up. He is making it so Christmas earnings will come in strong. This will be the beginning of the next leg up. He could also afford to look weak because let's face it with HK going on China has it's problems right now.

 

 

So tariffs do affect consumer prices?  And  Trump's claims that it's the Chinese who are paying for tariffs is wrong?

[bristolboy]

5 minutes ago, Cryingdick said:

 

 He could also afford to look weak because let's face it with HK going on China has it's problems right now.

 

 

He could afford to look weak? Really? How does that work vis-a-vis negotiations? So you think that Trump's backing down won't encourage the Chinese to stand fast? 

[Cryingdick]

45 minutes ago, Chomper Higgot said:

A pattern is emerging.

 

Don’t rule out market manipulation.

 

 

Currency manipulation. Trade war. You beginning to get it? It's all manipulation.

[nkg]

12 minutes ago, AlexRich said:

Big Baby Donald, the world’s playground bully, doesn’t like it when the little slant eyed guy who wears glasses, and sits at the back of the class, hits him back. When he plays the “bully” card and it doesn’t work, he runs home to mummy and tells her he “won”.

 

Good use of racist language, AlexRich. Do you get to use the term "slant eyed" if you are Scottish and read the Guardian?

 

Interesting to see your true colours showing.

[sammieuk1]

Looks like the oki koki will be popular this Christmas you put your trade war in your trade war out in out in out and shake it all about as we question how did humanity reach this point????

[Scott]

A post containing a racial slur has been removed.

 

[soalbundy]

15 minutes ago, bristolboy said:

He could afford to look weak? Really? How does that work vis-a-vis negotiations? So you think that Trump's backing down won't encourage the Chinese to stand fast? 

They will, all Trump is worried about is 2020 and the Chinese know that. Trump thought everything would be done and dusted by now and that he could present himself as the Chinese tamer of the West, after all trade wars are good and easy to win, now he will go into 2020 with a falling stock market and an angry populace. The Chinese are going to kick him where it hurts and his insulted allies will be laughing hoping to get a civilised, mentally stable president in the future.

[Chomper Higgot]

30 minutes ago, Cryingdick said:

 

I am not the guy who constantly heckles people for links. 

 

This is a good set up. He is making it so Christmas earnings will come in strong. This will be the beginning of the next leg up. He could also afford to look weak because let's face it with HK going on China has it's problems right now.

 

 

And here you accept Trump is manipulating the market.

[sfokevin]

[pegman]

So the best he could do for backing off was a vague promise by China to buy some agriculture product? That's about as reassuring as a contractor being told by the Trumps a cheque is in the mail for work they did at one of their properties. If I'm a soy farmer in Iowa I'm pissed.

[neeray]

I agree with others. China has got his number. That number ...... 2020 !

[Bluespunk]

1 hour ago, webfact said:

U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

Choke. 

[AlexRich]

1 hour ago, Cryingdick said:

 

It's a pretty basic premise fi you understand how earnings reports work.

 

I understand how earnings reports are compiled ... but don't quite understand why you believe Trump has a plan? There is no plan, he just backtracked to prevent the trade war madness from ruining his chances in 2020. More backtracking to come ... dressed up as "winning".

 

 

 

[chokrai]

4 hours ago, soalbundy said:

They will, all Trump is worried about is 2020 and the Chinese know that. Trump thought everything would be done and dusted by now and that he could present himself as the Chinese tamer of the West, after all trade wars are good and easy to win, now he will go into 2020 with a falling stock market and an angry populace. The Chinese are going to kick him where it hurts and his insulted allies will be laughing hoping to get a civilised, mentally stable president in the future.

Sure as hell will not be one from the Democrat party. They are about as mentally stable as a can full of rats.

[legend49]

5 hours ago, bristolboy said:

So once again Trump backs down on his threats. Paper tiger much? 

Yep LIE number 12, 386 since the oath.

[Becker]

China didn't blink and the man-child caved.......again.

MAGA indeed

[Emdog]

"...hopes of blunting their impact on U.S. holiday sales."

and who will get the profits? China. He is basically saying "forget about buying something made in USA or country other than China (isn't that the goal of tariffs?), give them your money until sated, then we'll get tough". This is a bit like banning apple picking in December, after the harvest has come in.

[Enoon]

 

The tariffs take effect (and prices go up) during election year?

 

"I'm tough, so you folks don't get your stuff" the slogan?

 

 

[AlexRich]

Maybe he’ll sign an executive order that on thanksgiving day only “turkeys” made of soyabeans are permitted ... to help his farmer “base” empty their barns full of the stuff.

[joecoolfrog]

" Trade wars are easy to win " said the ' greatest negotiator ever ' !

And still the orange monkey army refuses to face reality.