China is considering exempting some US goods from the 125% import tariff, Reuters reported on April 25, citing a source familiar with the matter.
China's Ministry of Commerce is drawing up a list of products and asking businesses to suggest goods that could be exempted, Reuters reported.
A list of 131 products exempted from the 125% import tariff, such as vaccines, chemicals, and jet fuel, is also circulating on Chinese social media.
"The Chinese government is asking our members to draw up a list of products that must be imported from the US, cannot find other sources, and if they cannot be purchased, the supply chain will be paralyzed," said Michael Hart, president of the American Chamber of Commerce in China. He revealed that some companies said they had been importing goods for a week without being hit with the new tariffs.
Bloomberg previously reported similar information, citing rising costs that are putting pressure on some industries. Sources say Chinese authorities are discussing tax exemptions for aircraft leasing. Like many other airlines, Chinese airlines do not own their entire fleets. They pay a third party to use the company's aircraft. The payment could skyrocket if import taxes are added.
Caijing (China) on April 25 also quoted a source saying that Beijing is also preparing to exempt import tariffs on eight semiconductor-related products. However, memory chips are not currently on this list.
In mid-month, the US also exempted smartphones, laptops, memory chips, and many consumer electronics from China from a 145% reciprocal tariff. However, US President Donald Trump said that there would be no complete tax exemption for electronics and that he would put the supply chain of these products under a national security investigation, which could lead to new tariffs.
U.S.-China tensions have escalated rapidly in recent months. To date, the US has imposed a 145% import tax on all products from China. Some goods are even subject to a 245% tax. China has also retaliated with a 125% import tax on US goods.
(according to Reuters)