China has created a list of U.S.-made products that would be exempted from its 125 percent tariffs and is quietly notifying companies about the policy, two sources familiar with the matter revealed. This move comes as Beijing seeks to mitigate the impact of its ongoing trade war with the United States.
The exemptions apply to specific items, including pharmaceuticals, microchips, and aircraft engines. Authorities have been asking firms to identify essential goods that need to be levy-free. However, the details of this “whitelist” were previously undisclosed.
The quiet approach enables Beijing to maintain its public stance of resisting U.S. tariffs while privately offering some concessions. The list, which has not been publicly shared, includes unspecified products that will benefit from tariff exemptions. Companies are being contacted directly by authorities about the potential exemptions.
One source, from a drug company in China, confirmed that they had been contacted by the Shanghai Pudong government regarding the list. The company, which relies on U.S. technologies, had previously lobbied for tariff exemptions.
China has also waived tariffs on ethane imports from the U.S., which is the sole supplier for some major processors. This latest development underscores China’s ongoing adjustments to alleviate the trade war’s strain on key sectors.
In addition to these measures, China has been surveying companies to assess the impact of the tariff war. A recent meeting with foreign business groups indicated that authorities are actively evaluating specific cases of tariff-related challenges.
U.S. President Donald Trump commented on the trade situation, expressing optimism about a potential deal with China, though emphasizing that it must be fair. China’s commerce and customs ministries have yet to comment on the situation.
