US delays tariffs on some Chinese goods, drops others | AP business

US government delays tariffs on phones, laptops and video game consoles

Stocks rebound after US agrees to delay tariffs on cellphones, laptops

US President Donald Trump has commented on the tariff's delay, saying that his administration chose to postpone tariffs on some Chinese imports to avoid hurting US shoppers before the Christmas holidays.

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. Those items will be subjected to the tariffs starting December 15.

Since Trump's August 1 tweets threatening the new tariffs, the United States benchmark S&P stock index has dropped more than 4%.

The US action came after China let its currency weaken 1.4%, sending it past the key 7-per-dollar level for the first time in more than a decade.

The U.S. Trade Representative said Tuesday that some products were being removed from the list that would be subject to new tariffs of 10% as of September 1. Beijing also halted U.S. agricultural purchases, inflaming a trade war that has roiled financial markets, disrupted supply chains and slowed global growth.

Technology investors welcomed news of the exemptions, pushing an index of chip stocks up 2.8%, while shares of Apple surged more than 5%.

Financial markets have fully priced in a single quarter-point move at the US central bank's September meeting and are still giving good odds on two more moves after that this year.

And it's removing other items from the list based "on health, safety, national security and other factors".

The Journal also notes that the USA already collected about $30 billion per year from pre-existing tariffs on goods made in various countries, including China.

Karl Schamotta, market strategist at Cambridge Global Payments says the move is clearly designed "to alleviate pressure on American consumers as they head into a critical holiday-punctuated election season".

"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.

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