Tuesday U.S. President Trump called a temporary ceasefire in the long trade war between America and China, delaying penalties on some of the more high-profile products after announcing just two weeks ago he was going to put tariffs on basically every product China sells.
What We Know:
- The original plan was to place a 10 percent tax on $300 billion in Chinese goods starting September 1, including toys, clothing, shoes, and consumer electronics like iPhones.
- That on top of the 25 percent tariffs on Chinese products Trump announced in May, there would be US restrictions on nearly all of Beijing’s exports to America.
- However, that plan is now gone, with the US Trade Representative office stating “Certain products are being removed from the tariff list based on health, safety, national security, and other factors will not face additional tariffs of 10 percent,” as well as announcing that products like cell phones and laptops will not face any tariffs until December 15.
- The new decision added a boost to U.S. stocks, like for example The S&P 500, one of the best indicators of the stock market’s overall health, rising two percent just an hour after the announcement.
- It is not clear why exactly the administration reversed on the decision, with it being rumored that Trump made the move to give companies a few months to import these products at no extra cost so they can be ready for the holiday season. Overall, this was a move that seems like it is going to have a positive impact on the country.
Y’all better go out and get that new phone ASAP!