Asian markets open generally higher, following the strong rebound in US stocks overnight. Though, strength is relatively limited as none of the major indices are gaining over 1% at the time of writing. Yen is also paring some of yesterday’s losses and recover broadly. It would take more time to see the real implications of US announcement to delay some tariffs on Chinese imports. The move was generally well received by industry groups. But some analysts criticized that it’s merely an incremental positive sign. It’s too late and insufficient.
In short, the tariffs on a 21-page list of products would be delayed until December, subject to further negotiations between US and China. Both sides are continuing telephone conversations in preparation for a meeting in Washington in September. According to Wells Fargo‘s estimation, the tariff delay involves around 60%, or roughly USD 155B worth of goods. The products range from cellphones, laptops and other consumer goods including 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.
In response to the news, Retail Industry Leaders Association said “removing some products from the list and delaying additional 10% tariffs on other products, such as toys, consumer electronics, apparel and footwear, until Dec. 15 is welcome news as it will mitigate some pain for consumers through the holiday season.”
The Consumer Technology Association also welcomed the the delay on some items, but added: “Next month, we’ll begin to pay more for some of our favorite tech devices – including TVs, smart speakers and desktop computers. The administration should permanently remove these harmful tariffs and find another way to hold China accountable for its unfair trading practices.”