Financial markets surged after the U.S. announced it will not impose a 10% tariff on certain products starting Sept. 1 and is pushing back planned duties on a range of popular consumer goods.
"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," the Office of the U.S. Trade Representative said Tuesday. The agency did not specify which items would be stricken from the list.
Tariffs on other items will be delayed until Dec. 15, the USTR said. Those include cell phones, laptops, video game consoles, computer monitors, and some types of toys, shoes and clothing.
The retail industry, which had lobbied for exemptions, said they were pleased with the move.
"Clearly, the administration understands the importance of avoiding higher taxes on American families during the holiday season. Still, continued uncertainty for U.S. businesses and consumers is a drag on the economy," said David French, senior vice president for government relations for the National Retail Federation. He reiterated the group's opposition to using tariffs as a tactic to change China's approach.
U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin held discussions with Chinese Vice Premier Liu He on Tuesday, a spokesperson for the USTR said. Another call will take place in two weeks, the spokesman said.
The Dow jumped 486 points, or 1.9%, to 26,392 in morning trade. The S&P 500 rose 1.9%, and the technology-heavy Nasdaq added 2.4%.