White House delays China tariffs

The United States will put off planned tariff hikes on Chinese goods until Dec. 15, easing the potential effect of the increase on holiday shoppers. A 10 percent tax is planned for nearly all Chinese imports, including iPhones, shoes, and toys, after that. Stocks on Wall Street rallied Tuesday morning after the news.

Will the United States back down in December? President Donald Trump threatened similar tariffs in May but changed his mind after meeting with Chinese President Xi Jinping in June at the G-20 summit in Japan. The Chinese Ministry of Commerce reported that top negotiators spoke by phone this week with their U.S. counterparts, Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and plan to talk again in two weeks. Investors hope the two sides can come to an agreement and the tariffs won’t be necessary.