Trump Retreats… Postpone 3 Months Additional Tariff
The Donald Trump stepped back from a policy of imposing additional tariffs on China, announced on September 1st. This is a concern about rising consumer prices in the US.
Asian stock markets rose, including the US, in anticipation of a easing of the US-China trade war. The Chinese yuan exchange rate also appreciated in 10 days.
The US Trade Representative (USTR) announced on December 15 that it will postpone tariffs on a number of items, including mobile phones, laptop computers, and video games, from China, which had swept 10% since next month.
The Wall Street Journal analyzed that the amount of products postponed to tariffs amounted to $ 156 billion based on imports last year, compared with only $ 107 billion of products subject to tariffs as scheduled.
President Trump said, “We took this step because of the Christmas season,” he said. “Tariffs can hurt consumers.” In addition to information technology (IT) products, consumer goods such as toys, clothing, and shoes were included in the tariff postponement. President Trump also called for a resumption of talks between the US and China in September, saying it was a “very productive call” about a phone call between senior US and US officials the day before.
As the US-China trade disputes, which had intensified, subsided somewhat, the market was discolored. The three major US stocks rose more than 1% at the same time. Japan’s Nikkei 225 Index also closed at 2,655.13, up 0.98% (199.69 points) from the previous day. China’s Shanghai Composite and Shenzhen Composite Index also rose 0.42% and 0.72%, respectively.
KOSPI also closed at 1938.37, up 0.65% (12.54 points) from the previous trading day. The KOSDAQ index was 597.15, up 1.08% (6.40 points) from the previous day.
Meanwhile, the People’s Bank of China announced the median exchange rate of the yuan against the dollar at 7.0312 yuan. The appreciation of the renminbi exchange rate only took 10 trading days.