The White House is delaying increased tariffs on certain imports from China, including cell phones, laptops and some apparel items, until the end of 2019, sending the stock market soaring in trading on Tuesday.
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The announcement from the United States Trade Representative – along with the decision to remove some products from the added 10 percent tariff due to health and national security reasons – is a reprieve for both corporate America and investors who were nervous about the escalating tensions between the U.S. and China.
The remaining products on the list of roughly $300 billion in shipments from the Asian nation will be subject to the higher duties on Sept. 1.
The decision comes after tensions between the two nations were escalated following Trump's decision to increase tariffs and China's move to tinker with the rate of yuan, prompting concerns of a brewing currency war, as well as the country's halt in purchases of U.S. agricultural products.
Despite the recent drama, negotiations continue.
Vice Premier Liu He spoke with top U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday, the Chinese government confirmed, and voiced concern over the tariffs. Another call is expected to be held within the next two weeks.
Among the stocks trending higher after the announcement are Apple, Caterpillar, Qualcomm, Intel, Walmart, Kohl's and Target.
For those products still subject to the heightened tariffs, USTR plans to allow for a process under which companies can apply for exclusion.