Stocks soar after US delays new tariffs on Chinese goods to December 15

The United States is delaying until December 15 imposition of new 10 percent tariffs on Chinese electronics, but going ahead with new duties starting September 1 on $300 billion in Chinese goods, the government announced Tuesday.

As Washington and Beijing work to resolve the escalating trade war, US Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He early Tuesday and has another call planned in two weeks, a USTR official told AFP.

The latest round of tariffs, which President Donald Trump announced on August 1, mean all Chinese imports into the United States would be subject to additional duties.

The sides were due to hold another round of meetings in Washington in September, but the deterioration in relations in the past two weeks cast doubt on whether the negotiations would take place.

And Trump accused Beijing of continuing to renege on its commitment to buy US agricultural goods.

"As usual, China said they were going to be buying 'big' from our great American Farmers. So far they have not done what they said. Maybe this will be different!" Trump tweeted on Tuesday.

USTR said in a statement it was going ahead with the tariffs next month, but would delay the start for cell phones, laptops, computer monitors, video game consoles and some toys, footwear and clothing.

In addition, "certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent."

Global market shockwave

Stocks rose sharply on Wall Street Tuesday after the US government said it would delay new tariffs on certain goods imported from China and remove tariffs on other goods entirely.

The ongoing trade war between the world's top two has sent shockwaves through global markets.

"Where markets head next will largely hinge on whether the threatened tariffs are implemented, and how the Federal Reserve responds," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.

The Trump administration and Beijing have been clashing for more than a year over American allegations that Beijing steals trade secrets and forces foreign companies to hand over technology. The tactics are part of China's drive to become a world leader in advanced technologies such as artificial intelligence and electric cars.

President Trump has imposed tariffs on $250 billion in Chinese goods and has said that on September 1, he will tax the $300 billion in Chinese imports that he has so far spared. In retaliation, China has imposed tariffs on $110 billion in US products.