Editorial | Trade war appears likely to enter its most difficult time ever
- US President Donald Trump’s decision to delay some tariffs on Chinese goods reads like a familiar script where escalations are punctuated by small steps towards compromise.
Donald Trump is a jolly good fellow. The American president has cited the need to boost Christmas shopping as a reason to delay or remove some tariffs against China set to take effect on September 1.
The latest move, seen by some as a concession to Beijing, will allow United States retailers to stockpile products they need for the back-to-school and holiday shopping seasons. But it is no more than a reprieve; there is still no end in sight to the trade war between the world’s two biggest economies.
The products that will have tariffs delayed are described by the US as including “mobile phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing”.
Some categories have also been removed from the tariffs list due to “health, safety, national security and other factors”, apparently following complaints from US businesses.
Even so, a new 10 per cent tariff on about half of the Chinese imports will still take effect on September 1. The original target took aim at about US$300 billion of Chinese consumer goods.
Capital markets around the world, including the Hang Seng Index in Hong Kong, initially shot up at the news, only to take an even deeper plunge the following day.