President Donald Trump meets business leaders at the Great Hall of the People in Beijing, China, in November, 2017.
Jonathan Ernst | Reuters
CNBC’s Jim Cramer said on Tuesday that the Trump administration’s decision to remove some items from its new China tariffs list signals the president wants to halt the stock market’s decline.
“I think this is the president saying, ‘I don’t want the stock market to go down any more,'” said Cramer, as the Dow Jones Industrial Average rocketed from a down opening to a more than 400-point gain.
Shortly after the open on Wall Street, U.S. trade officials announced the removal of certain items, including smartphones, from President Donald Trump‘s upcoming 10% tariffs on the $300 billion of Chinese imports not already taxed.
Apple shares surged about 5% on news of the reprieve.
The United States Trade Representative office also said that other items subject to the additional tariffs — set to go into effect on Sept. 1 — would be delayed until mid-December.
At the same time, Chinese officials said Tuesday they held a trade call with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin. China said it agreed to another call in two weeks.
“Everybody blinked,” said Cramer, characterizing the announcements from the U.S. and China, which have been locked in a yearlong trade war over what the White House sees as unfair business practices.