Remember the tariffs on goods made in China, which were supposed to go into effect on September 1st this year? Well, the Trump Administration announced that they will delay certain tariffs until December 15th.
USTR (The United States Trade Representative) said that:
“certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.” And as far as “cell phones, laptop computers, video game consoles, certain toys, computer monitors and certain items of footwear and clothing,” are concerned, they will be delayed until December 15.
This announcement eased some of the tension concerning the Christmas shopping season.
We remind readers that Apple shares fell 2% on August 1, shortly after President Trump announced a 10% tariff on the remaining $300 billion in Chinese goods which had not faced duties. But after this new turn in events, Apple shares closed up 4%. Companies like Corning, Lumentum and Qualcomm, which are Apple suppliers, also had a spike in shares after the USTR announcement.
As Apple is planning to release the latest iPhone models in September, the tariffs taking effect in December surely comes as good news to the company.
Apple previously argued that the tariffs would affect all of its major China-produced products like iPhone, iMac and iPhone. As a response to the company’s request, Trump said on Twitter that there will be no tariff waivers or relief for products made in China, adding that if they want to avoid tariffs, they should move production to the United States.