Tariff Implications After the U.S. Extends China Deadline
On Monday, President Trump delayed the high U.S. tariffs on Chinese goods by another 90 days. This extends the deadline to mid-November.
Markets expected an extension since the two countries had a general trade framework in place at the meeting in Stockholm. Shipping firms like FedEx, UPS, DH, COSCO Shipping, and Maersk should benefit from tariff rates staying the same for now. It removes any uncertainty until November.
Investors should continue to exercise caution in holding Chinese e-commerce firms. Nikkei Asia reported that the U.S. increased its efforts to crack down on tariff evaders. That would hurt sales of goods sold on Alibaba (BABA), JD, and PDD Holdings (PDD).
The U.S. reportedly added more civil investigative demands (“CID”) staff to find violations of federal trade laws. Later this month, the Administration is ending the de minimis exemptions. U.S. consumers may no longer get goods from Chinese retailers tax-free for orders valued at under $800.
15% Cut on Nvidia Sales
After Nvidia (NVDA) CEO Jensen Huang visited the President, the White House allowed Nvidia and AMD (AMD) to resume selling semiconductors. However, the President first wanted a 20% cut on H20 chips sold to China. That dropped to 15%.
AMD will also need to pay 15% to get an export license for selling AI chips.
