The United States Trade Representative eased minds and the markets, announcing the decision to delay tariffs with China until December 15, and remove some items outright.
Electric Sliding off the List. Consumer electronics and apparel were the two main product categories to receive an IOU on duties.
- Cell phones, laptops and computer monitors, certain toys, and footwear and clothing were items whose September 1 tariff deadline was delayed until December.
Free of all charges. The USTR announced the certain products are being removed entirely for “health, safety, national security, and other factors.” These products will not face the 10% additional tariff.
Saving Christmas. President Trump says the delay is an effort to stem their impact on the holiday shopping season.
Round of Apple-ause. In the aftermath of the delayed tariffs, the DIJA, S&P 500 and Nasdaq Composite all boomed with Apple leading the charge, surging more than 5%.
- Best Buy, Nike, Nordstroms and Macy’s all experienced a significant rise
How does this affect my wallet?
After markets plummeted following President Trump’s abrupt ending of the trade war’s ceasefire, the delay on tariffs allows you to loosen the grip on your clenched fist.
- China and the U.S. are set to meet and hold trade discussions again in two weeks.
Yield with caution. The USTR’s announcement widened the 2-year to 10-year yield curve, but it has recently narrowed to just 3.5 basis points, the flattest level since 2007.
- Yield curve inversion historically served as a reliable recession indicator watched closely by the Federal Reserve and market experts.
The United States Trade Representative announced that the tariffs on China will be delayed until December. This announcement had a big impact on the market, seeing the stock of Apple, Mattel, Hasbro, Best Buy and others skyrocket.
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