Rand gains by more than 1% after U.S. delays some China tariffs

A giant wall poster showing Chinese President Xi Jinping on the side of a school building in Lankao county Henan province. In the short run China's government has ample firepower to prevent economic growth from falling below the 6 per cent lower

A giant wall poster showing Chinese President Xi Jinping on the side of a school building in Lankao county Henan province. In the short run China's government has ample firepower to prevent economic growth from falling below the 6 per cent lower

However, according to the United States Trade Representatives as of August 13, tariffs on certain technology products are being delayed.

With the latest delay in tariffs, once again there were renewed hopes in markets of a resolution to the U.S. He said the new tariff would go into effect on September 1.

Financial markets have fully priced in a rate cut at the USA central bank's September meeting following a recent escalation in the bruising trade war between the United States and China. However, other items like clothing and food will still be affected by the 10% tariff starting on September 1, 2019.

"We're doing this for the Christmas season", Trump stated.

One casualty of the trade war with China has been American farmers, who have suffered due to China not purchasing crops at normal levels.

A 4.8 per cent jump in Apple shares and a rise in chip stocks pushed the technology sector, traditionally among the most sensitive to trade issues, 2.33 per cent higher.

The exemptions, combined with renewed talks with China, suggest Trump may be willing to compromise.

Goldman said the tariffs on China have increased uncertainty for businesses, which will likely cause them to pull back on hiring and investing in new equipment or software. "Maybe this will be different!", Trump tweeted.

In response, the National Retail Federation, an outspoken tariff opponent, said, "We are pleased the administration is delaying some tariffs ahead of the holidays and acknowledging the impact on American consumers". The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys.

As a result of the ongoing trade war between the United States and China, imports from China to the USA dropped by 12% and America's export to China fell by 19%. -Chinese trade spat would slam global growth and fester unresolved until after USA presidential elections in November 2020.

A global re-acceleration of growth should come to fruition later this year as major central banks are cutting interest rates and recent economic data has been better than where markets have been trading, Bangsund said. "What we really need is an effective strategy to address China's unfair trade practices by working with our allies instead of using unilateral tariffs that cost American jobs and hurt consumers". However, the USTR said that many items, including cellphones, laptops, video game consoles, and certain shoes and clothes, would not be hit with the new duties until mid-December.