Tariff delays affecting North Dakota business
The ongoing trade dispute between China and the U.S. took a step back just weeks before the September 1st deadline.
On August 1st, President Trump announced $300 billion worth of tariffs on anything from steel to manufactured products will be placed on September 1st. But the Office of the United States Trade Representative announced a delay.
Many of the targeted products set to have the 10% tax placed were taken off the tariff list. The USTR announcing the removal of some products were for health, safety, and national security reasons.
Other tariffs, including cell phones and computers, are still scheduled to have tariffs placed on them, but will be delayed until December 15th. Some companies have already seen price hikes just expecting them.
"It's just kind of a hit-and-miss kind of thing. Electronics is really strange. The profit margins are already down on electronics. So low that I think some of the companies have raised it just to increase their profit margins," said Clarence Sayler, Feist Electronics Owner.
While companies prepare for another looming deadline, investors are feeling a sense of relief.
Graner: "Today's announcement that President Trump was delaying some of the tariffs being assessed on China September 1st to Decembers 15th was also a positive news maker for the stock market, energies, and for soybeans," said Eugene Graner, Heartland Investor Services Inc. President.
After the announcement, the DOW soared more than 400 points and Apple saw a stock value increase of 4%, according to CNBC.
Now that the tariffs won't take effect until after the holidays, business owners are optimistic the season's demand for electronics will keep prices steady for consumers.