U.S. ditches plan to add new tariffs to toys, cellphones, and some clothing — for now

The United States Trade Representative office said Tuesday that certain items were being removed from the new China tariff list because of “health, safety, national security and other factors,” while tariffs on other items would be delayed until Dec. 15.

The products in the group that will have tariffs delayed include “cellphones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the office said.

President Donald Trump on Tuesday said the reason he was delaying some tariffs on Chinese imports ahead of the Christmas season was to stem their potential impact on holiday shopping.

Apple shares traded higher on the news, and stocks surged, with the Dow Jones Industrial Average rising by 500 points in midmorning trading.

Shares of retailers also jumped: Stocks including Guess, Abercrombie, and American Eagle were all up 5 percent or more following the news. Macy’s and Nordstrom rose by just over 3 percent.

The USTR added that it will conduct an “exclusion process for products subject to additional tariff.”

Separately, China’s Commerce Ministry said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. China said the two sides agreed to another call in two weeks.

Here’s the full statement from the USTR:

USTR Announces Next Steps on Proposed 10 Percent Tariff on Imports from China

Washington, DC – The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.

On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1.

Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.

Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.

USTR intends to conduct an exclusion process for products subject to the additional tariff.

The USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.

Visit the Source: https://www.nbcnews.com/business/economy/u-s-decides-not-add-new-tariffs-toys-cell-phones-n1041811?cid=public-rss_20190814

Add a Comment

Your email address will not be published. Required fields are marked *