The Dow added almost 450 points in Tuesday afternoon trading after the Trump administration postponed planned tariffs on China, alleviating traders’ fears that the trade war between the two countries was escalating.
The Dow Jones Industrial Average added 1.7% to 26,340, while the S&P 500 rose 1.7% to 2,931.85. The Nasdaq composite led the gains, jumping 2.6% to 7,758.76 in early afternoon trading.
This comes after days of declines on Wall Street amid concerns about the U.S.-China trade war.
“quote” says Skip Johnson, founding partner for Great Waters Financial in Minnesota
Tariff delay details
The Office of the U.S. Trade Representative on Tuesday said it would delay until Dec. 15 the tariffs on many products, including cellphones, laptop computers, video game consoles, some toys, computer monitors, shoes and clothing.
However, 10% tariffs will go into effect Sept. 1 on about $300 billion in Chinese imports extending the import taxes on just about everything China ships to the United States in a dispute over Beijing’s aggressive trade policies.
The list of tariffs scheduled to now go into effect Sept. 1 is 122 pages, while the list for December is 21 pages.
Some products are being removed from the tariff list for “health, safety, national security and other factors,” the office said.
Items still on the September list include: clothes, jewelry, linens, sunglasses, select motorcycles and mopeds, watches, guns and sports equipment.
The rebound comes after weeks of back-and-forth between the U.S. and China. Trump stunned markets at the beginning of the month when he announced the September 10% duties.
Contributing: The Associated Press
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