USA to delay China tariffs on some products, including laptops, cell phones

A clerk counts Chinese 100 yuan banknotes at a branch of China Construction Bank in Hai'an Jiangsu province

The United States Trade Representative (USTR) said it has removed a number of items from the list of products that will be subject to a 10 per cent tariff as of September 1, while delayed the implementation of the tariff on others.

The delay will impact cell phones, laptops, computer monitors, video game consoles and some toys, footwear and clothing, the U.S. trade representative said in a statement.

And Trump accused Beijing of continuing to renege on its commitment to buy United States agricultural goods.

Apple was not the only company to spike off the news, with the Philadelphia Semiconductor Index jumping as much as 2.6% in morning trading.

"The overall China tariff/demand situation represents a $20-$25 overhang on Apple shares and will remain a lingering cloud over the story in the near-term", Ives wrote in a note published August 13, prior to the news about the tariff delay.

The 21-page-list of products that won't get hit with tariffs until December includes baby monitors and strollers, microwaves, instant print cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, nativity scenes, fishing reels, paint rollers and food products.

USTR is still moving forward with tariffs on September 1 on many products such as live animals, dairy products, skis, golf balls, contact lenses, motorcycle engines, lithium ion batteries, snowblowers and various types of steel.

The delay was enough to propel stocks - which had been hampered over the last few weeks on trade worries - upward.

Investors took that as a sign of progress in trade negotiations, since a December implementation gives the two sides more than enough time to hammer out a wide-ranging trade deal to finally put their issues aside once and for all.

At the same, the new levies will not target "certain products" as they were removed from the tariff list based on health, safety, national security, and other factors, according to the USTR. The office plans to conduct an exclusion process for products subject to the additional tariff.

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