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BUSINESS Wednesday 14 august 2019
A25

Facing pressure, Trump delays tariffs on some Chinese goods

By PAUL WISEMAN and tariffs so they wouldn't af-
CHRISTOPHER RUGABER fect the critically important
AP Economics Writers Christmas shopping sea-
WASHINGTON (AP) — Re- son. He also noted that the
sponding to pressure from stock market rallied on the
businesses and growing news.
fears that a trade war is Hun Quach, vice president
threatening the U.S. econ- of international trade at
omy, the Trump adminis- the Retail Industry Lead-
tration is delaying some ers Association, welcomed
import taxes it planned to the administration's delay
impose on Chinese goods in the new tariffs on many
and is dropping others alto- consumer goods, saying it
gether. "will mitigate some pain for
The announcement Tues- consumers through the hol-
day from the Office of the iday shopping season."
U.S. Trade Representative Separately, China's Minis-
was greeted with relief on try of Commerce reported
Wall Street and by retail- that top Chinese negotia-
ers who have grown fearful tors had spoken by phone
that the new tariffs would with their U.S. counterparts,
wreck holiday sales. Trade Representative Rob- In this March 6, 2019, file photo a staff member works on a mobile phone production line during a
The administration says it still ert Lighthizer and Treasury media tour in Huawei factory in Dongguan, China's Guangdong province. Huawei Technologies
plans to proceed with 10% Secretary Steven Mnuchin, Co. is one of the world's biggest supplier of telecommunications equipment.
tariffs on about $300 billion and planned to talk again Associated Press
in Chinese imports — ex- in two weeks.
tending its import taxes on Together, the news of ne- ics at Bank of America negotiators, the prospects theft and coerced technol-
just about everything China gotiations and tariff delays Merrill Lynch, wrote Friday. for negotiations remain ogy transfers. And the taxes
ships to the United States provided at least a respite "We now have a number dim. A substantive deal on imports are increasingly
in a dispute over Beijing's after weeks of heightened of early indicators starting would require China to drawing resistance in the
strong-arm trade policies. U.S.-China trade tensions. to signal heightened risk of scale back its aspirations to United States.
Most of the new tariffs are The relief might prove only recession." become a tech superpow- "I don't think we're any clos-
scheduled to kick in Sept. 1. temporary, though, if the Goldman said the tariffs er. And relations between er to a deal," said Scott Ken-
But under pressure from re- tariffs eventually take full on China have increased the countries have been nedy, who analyzes China's
tailers and other businesses, effect and Beijing retaliates uncertainty for businesses, strained by mistrust. economy at the Center for
President Donald Trump's against U.S. exports. which will likely cause them The call "has the effect of Strategic and International
trade office said it would The Trump administration to pull back on hiring and creating a better environ- Studies. "I don't think there
delay until Dec. 15 the 10% is fighting the Chinese re- investing in new equip- ment. It sounds like they're will be any deal during the
tariffs on some Chinese im- gime over allegations that ment or software. Trump's moving ahead and making Trump administration."
ports, including such pop- Beijing steals trade secrets, tariffs on Chinese goods plans to meet," Dollar said. The decision to delay the
ular consumer goods as forces foreign companies have also weighed down Still, the best possible out- tariffs "shows that the two
cellphones, laptops, video to hand over technology stock prices lower, which come, he said, would be a economies are interde-
game consoles, some toys, and unfairly subsidizes its could depress spending by "mini-deal" in which China pendent and that inter-
computer monitors, shoes own firms. Those tactics wealthier Americans, Gold- agrees to buy more Ameri- dependence benefits
and clothing. are part of Beijing's drive to man found. can products and nar- many Americans" by pro-
The administration is also become a world leader in "It's pretty clear that the row the gaping U.S. trade viding affordable goods,
removing other items from such advanced technolo- problem with (Trump's) tar- deficit with China. In ex- Kennedy said. "It's not so
the tariff list entirely, based gies as artificial intelligence iff tactics is it's bad for the change, perhaps the Unit- easy to penalize China or
on what it called "health, and electric cars. economy," said David Dol- ed States would lift some disengage."q
safety, national security But 12 rounds of talks have lar, a China specialist at the sanctions on the Chinese
and other factors." failed produce any reso- Brookings Institution and a telecommunications giant
The news sent the Dow lution. Frustrated with the former official at the World Huawei, which the U.S. sees
Jones Industrial Average lack of progress, Trump Bank and U.S. Treasury. as a national security risk.
soaring more than 400 raised the tariffs on $200 bil- "You try to use the weapon So far, Trump's tariffs have
points at midday. Shares lion in Chinese imports from but then you get blowback failed to get President Xi
of Apple, Mattel and shoe 10% to 25% in May and said on your own people." Jinping to yield to the U.S.
brand Steve Madden, Aug. 1 that he'd impose Despite the exchanges be- demands on the thornier is-
which stand to benefit from 10% taxes on an additional tween the U.S. and Chinese sues of intellectual property
the delayed tariffs, particu- $300 billion on Sept. 1.
larly shot up on the news. On Sunday, economists
The delay seemed timed to at Goldman Sachs down-
cushion, until after the holi- graded their economic
day shopping season, the forecasts, citing the im-
financial and perhaps po- pending tariffs on consum-
litical impact of escalating er goods. And economists
tariffs on consumer goods, at Bank of America Mer-
which would likely force re- rill Lynch have raised their
tailers to raise prices. odds of a recession in the
Trump acknowledged as next year to roughly 33%,
much in an exchange with up from about 20%.
reporters in New Jersey, "We are worried," Michelle
saying he was delaying the Meyer, head of econom-