TARIFF DELAY. Trump said Tuesday his decision to delay tariffs ahead of the Christmas season was to avoid an impact on holiday shopping. By Todd Horwitz, Bubba Trading.

 

U.S. Delays some China Tariffs

The White House on Tuesday said it would delay imposing tariffs on Chinese imports of cellphones, laptop computers, video game consoles, and certain types of footwear and clothing until Dec. 15, significantly later than the Sept. 1 deadline President Trump had repeatedly threatened.

The announcement, which came from the Office of the U.S. Trade Representative, ensures that Apple products and other major consumer goods would be shielded from the import tax until at least December, potentially keeping costs on these products down during the holiday shopping season.

It was the latest in a series of unexpected announcements and reversals by Trump as the White House attempts to pressure China to change long-standing economic practices. The confusion and uncertainty has weighed on the economy, leading companies to tighten up investment as they wait for a resolution.

Earlier this month, President Donald Trump announced a new round of 10% tariffs on $300 billion worth of Chinese imports that eluded duties. Markets rallied on the news. The Dow Jones Industrial Average rose 372 points, while the S&P 500 jumped 1.48% and the Nasdaq rose 1.95%.Delays on centerpiece technology products boosted tech stocks and distributors of technology items. Apple shares traded 4.2% higher on the news and Best Buy soared 6.5%. Chipstocks also moved out of correction territory with the Semiconductor ETF down 8% from its July high.

The delay in footwear and apparel tariffs lifted retailers, including Nike, Kohl’s, and Nordstrom. The retail ETF the XRT rose 1.6%. Toy products being delayed caused Hasbro and Mattel to jump 2.75% and 4.6% respectively. Other items on the list of delayed items include food and kitchen items, numerous chemicals, fireworks, baby products and sports equipment.

The USTR did not specify which items will be removed from the list but said it will conduct an “exclusion process for products subject to additional tariff.” Trump said Tuesday his decision to delay tariffs ahead of the Christmas season was to avoid an impact on holiday shopping. Additionally, he said all of the delays “help a lot of people.”

Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.