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US takes some items off China tariff list

US takes some items off China tariff list

Earlier on Tuesday, China's chief trade negotiators, Vice Premier Liu He and Commerce Minister Zhong Shan, spoke to their USA counterparts, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.

The Trump administration on Tuesday delayed imposing a 10 per cent import tariff on laptops, cellphones, video game consoles and some other products made in China that had been scheduled to start next month, in an abrupt pullback from a hardline stance on Chinese trade.

U.S. President Donald Trump arrives to Francis S. Gabreski Airport in Westhampton, New York for a fundraising luncheon to benefit his reelection campaign and the Republican National Committee in Southampton, New York, U.S., August 9, 2019. According to the statement, tariff exemptions will include a variety of consumer electronics such as laptop computers, monitors and game consoles as well as footwear and clothing items. It will remove other items from the list based "on health, safety, national security and other factors".

The two sides were due to hold another round of meetings in Washington in September, but the deterioration in relations in the past two weeks cast doubt on whether the talks would take place. Shares of Apple, Mattel and shoe brand Steve Madden shot up. The Philadelphia chip index rose 3.16%.

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U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin held discussions with Chinese Vice Premier Liu He on Tuesday, a spokesperson for the USTR said.

"It'll be good maybe for this week as we kind of get out of an oversold situation but the market is going to bounce around for the rest of the year".

The administration is still moving forward with 10% tariffs on much of the $300 billion of imports first disclosed in May, publishing a 122-page list of products that will face tariffs beginning September 1, including smartwatches. The Nasdaq Composite was up 165.16 points, or 2.10 per cent, at 8,028.57.