Aug 13, 2019

U.S. delays impending China tariffs on some products until December

Shipping containers from China and Asia are unloaded at the Long Beach port, California. Photo: Mark Ralston/AFP/Getty Images

The impending 10% tariffs on $300 billion worth of Chinese imports targeted by President Trump in the trade war will be delayed from Sept. 1 to Dec. 15 for certain products, the Office of the U.S. Trade Representative announced Tuesday. Certain products will also be taken off the list based on "health, safety, national security and other factors."

Why it matters: The delay — for items like cellphones, laptops, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing — will help accommodate the holiday rush to ship products from China, easing the financial burden on U.S. importers. The Dow spiked 2% on the news, with the share price of companies like Apple, Best Buy, Dollar Tree, Hasbro and Gap leading the surge.

Between the lines: The threat of a crashing stock market and higher Christmas shopping prices appears to have spooked the Trump administration, despite the president's false insistence that China pays the cost of tariffs directly into the U.S. Treasury.

  • China expert Bill Bishop notes on Twitter: "Remarkable cave by Trump on his tariff threat from early August. The message to Beijing is Trump can’t hold firm because of worries voters may get unhappy with more expensive holiday goods. So why would Beijing make concessions?"

What's next: The next round of U.S.-China trade talks is expected to take place in the next 2 weeks, according to the Chinese Ministry of Commerce.

Go deeper: The forever trade war

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George Floyd protests: What you need to know

Photo: David Dee Delgado/Getty Images

Clashes erupted between police and protesters in several major U.S. cities Saturday night as demonstrations over the death of George Floyd and other police-related killings of black men spread across the country.

The big picture: Floyd's death in Minneapolis police custody is the latest reminder of the disparities between black and white communities in the U.S. and comes as African Americans grapple with higher death rates from the coronavirus and higher unemployment from trying to stem its spread.

Massive demonstrations put police response to unrest in the spotlight

Washington State Police use tear gas to disperse a crowd in Seattle during a demonstration protesting the death of George Floyd. Photo: Jason Redmond/AFP via Getty Images

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Why it matters: The situation is tense across the U.S., with reports of protesters looting and burning buildings. While some police have responded with restraint and by monitoring the protests, others have used batons, tear gas, rubber bullets and other devices to disperse protesters and, in some cases, journalists.