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

The tariffs have been overhanging the world's economy since August 1 when U.S. President Donald Trump tweeted he wanted to put another 10 per cent tariff on another $300 billion United States worth of Chinese imports. Those items will be subjected to the tariffs starting December 15.

And Trump accused Beijing of continuing to renege on its commitment to buy U.S. agricultural goods.

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

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". "Maybe this will be different!"

Cell phones, laptops, video game consoles, some toys, computer monitors, and certain items of footwear and clothing won't be hit by new tariffs until December 15.

The delay was enough to propel stocks - which had been hampered over the last few weeks on trade worries - upward. Most of the levies are scheduled to kick in September 1.

The iPhone maker is highly correlated to trade issues with China, given the country is both a key part of its supply chain as well as a major source of revenue.

The administration also announced that certain products will be permanently removed from the tariff target list for reasons of health, safety and national security.

The announcement comes amid growing concerns about a global slowdown.

While trade talks between the U.S. and Chinese delegations are continuing, the two sides have failed to hammer out a deal that can put an end to the year-long trade row. These products accounted for a combined $98 billion of Chinese imports in 2018, according to a Reuters analysis of US Census bureau data. 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.

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