Trade War: Trump Postpones Tariffs on Chinese Goods Due to Holidays

The tariffs were due to take effect in September but have been pushed back to December.

President Donald Trump on Tuesday backed his plan to impose 10% tariffs on the remaining Chinese imports, postponing duties on mobile phones, laptops and many other consumer goods due to holiday sales in the US. This is reported by Reuters.

This move by the president led to a sharp rise in inventories and caution among retailers and technology groups. The new tariff will take effect on December 15. It will be imposed on a thousand products, including clothing and footwear. This may boost the holiday sales season, caused by the consequences of the prolonged trade dispute between the world's two largest economies – China and the US.

The US Trade Representative's Office announced the decision minutes after China's Ministry of Commerce said that Vice Premier Liu He had held a phone call with US trade representatives.

The ministry said Liu agreed to hold another phone call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin within the next two weeks. Trump said both sides could meet in early September, as had been planned.

Apple Shines

The delay of tariffs on a significant part of the remaining list of Chinese imports, worth $300 billion, pushed US stocks up by more than 1.5%.

Apple shares soared 4% on news that its key products would be spared from tariffs.

But Trump's administration still plans to impose 10% tariffs starting September 1 on thousands of food products, clothing and other consumer electronics from China. These include smartwatches from Apple and Fitbit, smart speakers from Amazon.com, Google and Apple, as well as Bluetooth headphones and other devices. The delay in imposing tariffs provides some relief to retailers.

Although most stores would have stocked their shelves with holiday goods before the September deadline, some could have faced tariffs on orders at the end of the shopping season. Trump announced the tariffs on September 1 less than two weeks ago, accusing China of failing to keep its promises to buy more American agricultural products. The US president wrote on Twitter on Tuesday:

Industry Reaction

The US Chamber of Commerce welcomed the delay in tariffs and said that "it is more important than ever for both sides to return to the negotiating table and commit to making progress toward a workable agreement."

The National Retail Federation said that "removing some products from the list and postponing additional 10% tariffs on other goods, such as toys, consumer electronics, clothing and footwear, until December 15 is welcome, as it will ease some of the pain for consumers."

The 21-page list of products that will not be affected by tariffs until December includes: baby monitors and strollers, microwave ovens, instant cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, Christmas scene decorations, fishing reels, paint rollers and food products.