US delays tariffs on some Chinese goods, drops others

  • US delays tariffs on some Chinese goods, drops others

US delays tariffs on some Chinese goods, drops others

Other items facing a 10% tariff will go ahead as planned on 1 September. And it's removing other items from the list based "on health, safety, national security and other factors".

It added: "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".

The top United States trade negotiator on Tuesday said that new tariffs on $300 billion in Chinese-made consumer goods including cell phones, toys and video game consoles would be delayed until December 15. It said talks with trade representative Robert Lighthizer and treasury secretary Steven Mnuchin would occur again in two weeks' time.

Trade-sensitive technology shares post strong gains in early trade. The Philadelphia chip index rose 3.16%.

However, some consumer electronics items spared from previous U.S. tariffs on Chinese goods, including smart watches, fitness trackers, smart speakers and Bluetooth headphones, were not given a reprieve.

The USTR plans to publish a full list of the products later Tuesday. Popular products on the list include smart watches made by Apple and Fitbit, smart speakers from Amazon and Apple and Alphabet's Google and Bluetooth connected devices.

Financial markets have fully priced in a rate cut at the USA central bank's September meeting following a recent escalation in the bruising trade war between the United States and China.

Many U.S. retailers and other businesses had complained that the new tariffs would make household products more expensive for American consumers.

But in a tweet on Tuesday, Mr Trump hinted that he was expecting something in return, suggesting that China's failure to "buy big" from U.S. farmers could be about to change. "Maybe this will be different!", Trump tweeted.

The Dow gained more than 400 points, or 1.7%, rising to 26,339 at 10:40 a.m.