Tech companies get a reprieve thanks to a reversal from the President on tariffs

President Donald Trump and the Office of the U.S. Trade
Representative have
issued technology companies some temporary tariff relief
.

Citing an unwillingness to hit consumers with higher prices on
things like computers, mobile phones, laptops, video game consoles,
computer monitors, clothes and shoes before the holidays, the
President and his trade reps are holding off on slapping additional
tariffs on those products coming from China.

The President could also have been motivated by growing concerns
that the ongoing trade war
could trigger a global recession and hurt his chances for
re-election
in 2020.

Whatever the reason, the news sparked a stock market rally on
Tuesday with investors ignoring the rising prices that 10% tariffs
on imports that don’t include consumer goods would cause.

The Dow Jones Industrial Average and S&P 500 indices were
both up 1.4% on the day, while the Nasdaq rose 1.9% — thanks in
large part to a surge of Apple stock. The company’s
stock rose $8.49 or over 4.2% to close at $208.97.

At the beginning of the month, President Trump said he would
slap a 10% tariff on $300 billion worth of Chinese goods, which
sent markets tumbling. An ensuing slight devaluation of the Chinese
currency further pushed markets into a tailspin before they began
to recover.

The news on Tuesday all but erased those earlier losses.

These market whipsaws between fear and trembling and irrational
exuberance won’t end until the U.S. and China come to some sort
of agreement in the trade war.

Earlier in the day, Treasury Secretary Steven Mnuchin and Trade
Representative Robert Lighthizer spoke with their Chinese
counterparts Vice Premier Liu He and Commerce Minister Zhong Shan
about the ongoing trade battle. The two Chinese officials issued a
protest against the duties that were set to take effect in
September. The two trade representatives
have a called scheduled
for another two weeks.

Source: FS – All Tech News 2
Tech companies get a reprieve thanks to a reversal from the President on tariffs