Economy

U.S. to delay China tariffs, providing some relief to retailers and investors

Stock markets react, and the dollar climbs at a slower pace against emerging currencies

dolar bill
Ler em português
  • The US government decided to postpone the extra 10% tax on Chinese products from September 1st to December 15th;
  • The 10% extra tax announced by Trump will focus on products such as mobile phones, computers, video game consoles, footwear and apparel, among other items;
  • This Tuesday (13), after the news of the postponement of the taxation of Chinese products by the US, the dollar climb slowed.

According to Reuters, the US government decided to postpone the extra 10% tax on Chinese products from September 1st to December 15th. The information, according to the news agency, was provided by the United States Commercial Representative Office. Last week, the announcement of this new tariff by President Donald Trump generated concern in the international market.

Off to a slow start early in the day, the Ibovespa (a benchmark index of the Brazilian Stock Exchange) responded positively to the news. The Index finished the day with a gain of 1.36%, at 103.299 points.

The 10% extra tax announced by Trump will focus on products such as mobile phones, computers, video game consoles, footwear and apparel, among other items.

The return of the trade conflict has in recent days turned into a full-blown currency war that is having a stronger impact mainly on emerging currencies and stock markets, such as those in Latin America. The results of the primaries of the Argentine presidential elections, held on Sunday (11), increased tension in the region.

On Monday (12th), the Brazilian Real and the Argentine Peso suffered from their devaluation against the dollar. Argentine companies recorded a historic fall, and the US currency (USD) was valued at over 60 pesos (ARS).

The Argentine stock market’s Merval index shrank by 38%, the second biggest fall in a stock market since 1950, according to the Valor Econômico newspaper. In dollars, the loss reached 48%.

This Tuesday (13th), after the news of the postponement of the taxation of Chinese products by the US, the dollar’s climb slowed. The commercial dollar finished the day quoted at BRL 3.96 for sale, after closing on Monday (12th) at BRL 3.98. In Argentina, with the political tension still persisting due to the presidential elections, the dollar is quoted at ARS 55.57.