Markets React to US Tariff Delay on Consumer Goods from China

China Vice Premier Liu He spoke by phone with US Trade representative Lighthizer and after agreeing to talk again in two weeks the US announced that some consumer facing goods would be exempt until December 15.

The 10 percent increase still remains for articles published on the list on May 17, which will take effect on September 1.

Safe havens fell as soon as the news of the exemptions hit the wires. The JPY fell 1.25 percent and the CHF lost 0.41 percent. Gold traded 0.52 percent lower after the US announced that most of the consumer goods in the list would not be hit by the September 1 tariffs.

Equities surged with the news as the prolonged trade war has been the biggest negative factor hitting stocks. The consumer facing piece of the tariff exemptions boosted the tech sector, specially companies like Apple which rose 4.75 percent after the news

Oil also rebounded with WTI gaining 2.68 percent and Brent 2.8 percent as global growth concerns have eased as the two largest economies are back on the negotiating table.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.