Late on Friday, the Trump Administration made another unexpected concession to Beijing when the Commerce Department announced it would extend a reprieve given to Huawei permitting the Chinese firm to buy supplies from US companies so that it can continue to service existing customers. Now, on Monday, in an interview with Fox Business, Commerce Secretary Wilbur Ross affirmed that Huawei will receive another 90 day reprieve to conduct business with some US businesses.
Breaking news- Confirmed. @CommerceGov Secy wilbur ROSS just confirmed the US is extending #Huawei deadline while also adding 46 subsidiaries to the "entity list" @MorningsMaria @FoxBusiness "nov19th new deadline for us CO's to stop selling to huawei. pic.twitter.com/401npSsDoz— Maria Bartiromo (@MariaBartiromo) August 19, 2019
Stock futures, which had seemingly already shrugged off the carnage of last week, were already pointing toward a higher open, but moved even higher on the news.
All of this is happening after Trump announced last week that he would delay imposing the 10% on some $300BN in mostly consumer goods in what appeared to be a panicked response to the market's vicious selloff, as well as fears that more tariffs could hurt holiday sales at a fragile time for the economy. Instead of going into effect on Sept. 1, those tariffs won't start now until mid-December. Ross also said the Commerce Dept has added another 40 Huawei subsidiaries to its entities list.
US is giving Huawei another 90 days to conduct some business in the U.S., Commerce Sec. Wilbur Ross tells Fox Business.
Of course, as one Twitter user pointed out, Ross has continued to parrot the Trump Admin line about US consumers not paying tariffs - particularly when the Administration just moved to delay the next round of tariffs so as to avoid a "stagflation"-type scenario.
Ross still peddling the line about how US consumers aren't paying the tariffs.... seems silly saying it after moves to delay some Sept tariffs so not to impact holiday spending— Yogi Chan (@Yogi_Chan) August 19, 2019
Ross also parroted Trump's line that there will likely be a recession 'eventually', but that the 2s10s inversion - the latest in a string of US yield curve inversions - is hardly reason to panic.