The Donald Trump administration has postponed the plans to levy tariffs on the remaining $156 Billion consumer goods until Dec. 15th. Earlier, the data was scheduled to Sept. 1. Trump had levied 25% tariffs on the $300 Billion goods amid the trade war. Now, the government will levy an additional 10% tariff on half of the goods.
Oxford reports learned that the enforced tariffs will be levied on electronic products such as toys, game consoles, and LED lamps. According to the people close to the matter, Robert Lighthizer, Treasury Secretary, and Steve Munchin, the economic advisor was against the decision to slump additional tariffs on China.
The decision to delay the date is in regards to reduce the impact on U.S. customers during the Christmas Season. However, there are more reasons to extend the “huge impact” date. The people familiar to the matter say that it is to reduce the volatility in the stock market.
Last week, Goldman Sachs addressed to its clients that escalating trade war will lead to recession. While the effect of delaying the tariffs has soared the stock market. Apple’s share rose 4% after the announcement and the Asian market also saw a rise in its market.
According to the Wall Street Journal, the US and China are in talks to hold the meeting in the Washington next month. But “these discussions aren’t going to go anywhere” if China resists to not bring any structure change, an official said. The move to suspend tariffs came after the negotiators on both sides talked on the call.
In recent weeks, the two powerful economies have been talking on a limited deal. The limited deal incites China to buy more agricultural products in return to relieving restrictions on China’s Huawei Technologies. However, the talks in Shanghai didn’t hit any conclusion.
After the talks, Trump threatened China to impose additional tariffs. “If they don’t want to trade with us anymore, that would be fine with me,” Mr. Trump said at the White House. The latest relief on China does not include tools, apparels, and footwear items.