news 4 months ago

Trump: Tariff Move Made for the 'Christmas Season'

Newser — Kate Seamons

The Trump administration on Tuesday announced it is punting on some of the tariffs it has announced against China. "We're doing this for the Christmas season," President Trump told reporters, a reference to fears that the import taxes could depress holiday sales, reports Reuters.

The AP reports the new 10% tariff on items like phones, laptops, video game consoles, select toys, some clothing, and Christmas tree lights and ornaments won't kick in until Dec. 15, rather than Sept. 1 as planned.

It can take a month for goods to actually reach the US, meaning the tariff impact won't be felt until the holiday has passed.

Some items are also being dropped from the list altogether due to "health, safety, national security, and other factors," notes the AP, but many others, including sporting goods, will still experience the 10% tariff effective Sept. 1.

The Dow rose 400 points on the news, with Apple stock taking a sizable jump. Bloomberg notes the news came on the same day Chinese and US officials spoke "for the first time since the recent escalation in tensions." Another call is planned in two weeks' time.

CNBC's observation: "The acknowledgement that tariffs could harm holiday sales marks a shift for Trump, a self-described 'tariff man' who has long claimed that the taxes on imports help the US while applying pressure on China."

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