China EXEMPTS A Quarter of US Imports From Tariffs

China quietly exempts US goods from tariffs, covering around $40 billion worth of imports, in an effort to soften the blow of the trade war on its own economy.

Chinese officials are quietly drawing up a “whitelist” of critical U.S. goods that importers rely on to exempt them from Beijing’s retaliatory tariffs, Reuters reported, citing unnamed people familiar with the matter.

The news adds to a growing number of reports from China of businesses discovering that tariffs have been waived on some goods, such as certain semiconductor and integrated circuit products.

It also shows how, underneath its tough rhetoric, Beijing is trying to mitigate the impact of the U.S. trade war on its export-reliant economy, the world’s second-largest, which was already under pressure from a broader slowdown.

GROK: China is quietly exempting some U.S. goods from tariffs, particularly those vital to its economy, to soften the impact of the trade war on its own businesses. This move affects roughly $40 billion worth of imports, representing a significant portion of China’s trade with the US. The exemptions are focused on goods where China lacks alternatives, such as semiconductors, chipmaking equipment, medical products, and aviation parts.
Here’s a more detailed breakdown:

Why the exemptions?
China is struggling with the cost of retaliatory tariffs on U.S. goods, particularly those deemed critical to its economy. By waiving tariffs on these imports, China aims to ease the burden on its businesses and potentially encourage them to find new suppliers outside the US.

What goods are exempted?
The specific products being exempted include items like certain semiconductors, chipmaking equipment, medical products, and aviation parts.
How is this happening?

The Wall Street Journal reports that Chinese authorities have been notifying importers of these exemptions, effectively waiving the 125% tariff increase.

Impact on the trade war:
This move signals a potential softening in China’s hardline stance on the trade war, suggesting Beijing is concerned about the economic consequences. It could also be a way to signal to the U.S. that China is open to negotiation and compromise.

China exempts some goods from US tariffs – Reuters
China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical…
Reuters

China Quietly Exempts Some U.S.-Made Products From Tariffs – WSJ
Beijing has been canvassing companies and waiving duties on U.S. goods in sectors where it lacks alternatives. …
WSJ