Ad Banner
Advertisement by Open Privilege

China considers tariff exemptions amid trade war

Image Credits: UnsplashImage Credits: Unsplash
  • China is considering exempting some U.S. imports from its 125% tariffs, signaling concern over the economic impact of the trade war.
  • A Ministry of Commerce taskforce is collecting lists of items for potential exemptions, including eight semiconductor-related items.
  • The move aims to mitigate economic strain on Chinese industries and potentially pave the way for more flexible negotiations with the U.S.

[WORLD] China is exploring the possibility of exempting certain U.S. imports from its steep 125% retaliatory tariffs, marking the strongest indication yet that Beijing is growing increasingly concerned about the domestic economic repercussions of its protracted trade war with Washington. According to a source familiar with the matter, the Ministry of Commerce has tasked a special committee with collecting proposals from companies on goods that could qualify for exemption.

The move comes as mounting signs point to the trade conflict’s toll on China’s economy. While Beijing has long maintained a firm position on tariffs, recent data points to softening demand and a sluggish rebound in consumer activity, compounded by the lingering impact of the pandemic. These trends have placed mounting pressure on Chinese industries and policymakers alike.

Financial publication Caijing, citing anonymous sources, reported Friday that the government is considering excluding eight semiconductor-related products, though memory chips are not among them. A list of 131 product categories allegedly under consideration—ranging from vaccines and chemicals to jet engines—was widely circulated on social media platforms and within business and trade circles. Reuters has not independently verified the authenticity of the list.

The possible exemptions suggest a calculated shift in China’s trade strategy. By selectively lifting tariffs on certain American imports, Beijing seeks to ease economic strain on domestic sectors while signaling a willingness to engage in more pragmatic dialogue with the United States. The measure could also help stabilize global supply chains, which have suffered under ongoing trade friction between the world’s two largest economies.

While Washington has described the current trade status quo as economically unsustainable and has granted tariff relief to specific electronic goods, China has repeatedly vowed to uphold its tariff regime unless the U.S. makes concessions of its own. Yet beneath the combative rhetoric, China’s economic indicators reveal underlying vulnerabilities, including tepid demand and consumer sentiment that has yet to fully rebound from pandemic-era lows.

Despite its strong language, Beijing’s recent actions reflect a more nuanced approach. The proposed exemptions may be seen as an overture aimed at easing the trade standoff and setting the stage for renewed negotiations. The effectiveness of this strategy, however, will largely hinge on the U.S. response and whether both nations are prepared to find a path toward de-escalation.

In the meantime, Chinese authorities are urging exporters hit by tariffs to redirect their focus toward the domestic market. However, businesses report that local demand is weaker, margins are slimmer, and customers less predictable. While tariff exemptions offer more substantive support, they also soften the economic blow for U.S. exporters—potentially reducing pressure on the Biden administration to compromise.


Ad Banner
Advertisement by Open Privilege

Read More

Mortgages United States
Image Credits: Unsplash
MortgagesMay 19, 2025 at 9:30:00 PM

Dave Ramsey warns homebuyers of costly mortgage mistake

[UNITED STATES] Financial expert Dave Ramsey is warning prospective homebuyers against a prevalent mortgage mistake that could lead to paying tens of thousands...

Business United States
Image Credits: Unsplash
BusinessMay 19, 2025 at 9:30:00 PM

Italy museum visits break population record

[EUROPE] Italy’s museums made history in 2024, drawing more than 60 million visitors-a figure that, for the first time, exceeded the country’s own...

Health & Wellness United States
Image Credits: Unsplash
Health & WellnessMay 19, 2025 at 8:30:00 PM

Protein gaps in vegan diets

[WORLD] As veganism continues its rapid ascent in popularity, a new wave of scientific research is challenging long-held assumptions about the adequacy of...

Economy United States
Image Credits: Unsplash
EconomyMay 19, 2025 at 8:00:00 PM

Americans tighten spending as economic worries grow

[UNITED STATES] Following a surge in panic buying, a growing number of Americans are tightening their budgets and adjusting to a more minimalist...

Small Business United States
Image Credits: Unsplash
Small BusinessMay 19, 2025 at 5:30:00 PM

Healing financial trauma in entrepreneurs

Financial trauma is an often invisible force shaping the decisions, growth, and well-being of entrepreneurs across the United States. Affecting more than two-thirds...

In Trend United States
Image Credits: Unsplash
In TrendMay 19, 2025 at 5:30:00 PM

Secrets of Alcatraz

[WORLD] Once a fortress of fear and isolation, Alcatraz Federal Penitentiary has captivated the world for decades. But beyond the infamous escape attempts...

Culture United States
Image Credits: Unsplash
CultureMay 19, 2025 at 5:00:00 PM

The rise of trade jobs in the Gen Z workforce

[UNITED STATES] Two years ago, John Smith sat down to complete the Common Application for college. Though he had always been a good...

In Trend United States
Image Credits: Unsplash
In TrendMay 19, 2025 at 3:30:00 PM

Saving insects through science

[WORLD] Insects, often overlooked in conservation efforts, are integral to the health of ecosystems and human survival. Recent studies highlight the alarming decline...

Economy United States
Image Credits: Unsplash
EconomyMay 19, 2025 at 12:30:00 PM

Singapore's cautious approach to economic forecast amid trade uncertainty

[SINGAPORE] Singapore is unlikely to revise its economic growth forecast upwards later this week, as recent signs of easing trade tensions have not...

Politics United States
Image Credits: Unsplash
PoliticsMay 19, 2025 at 11:30:00 AM

Stubb on US-Russia tensions and NATO's future

[UNITED STATES] Former U.S. President Donald Trump is showing signs of impatience with Russian President Vladimir Putin, according to Finnish President Alexander Stubb,...

Health & Wellness United States
Image Credits: Unsplash
Health & WellnessMay 19, 2025 at 11:30:00 AM

Could vitamin E promote longevity?

[WORLD] Recent studies suggest that vitamin E, a fat-soluble antioxidant commonly found in foods like almonds, spinach, and sunflower seeds, could play a...

Finance United States
Image Credits: Unsplash
FinanceMay 19, 2025 at 11:00:00 AM

Malaysia faces likely OPR cut in 2025

[MALAYSIA] Investment banks are forecasting a 25 basis point reduction in Malaysia's Overnight Policy Rate (OPR) by Bank Negara Malaysia (BNM) in the...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege