Topline
The Chinese government may exempt some goods from its 125% tariff rate on all U.S. imports over reported concerns about the economic impact of the steep levies—imposed as a tit-for-tat response against Washington’s “reciprocal” tariffs—in a move that could echo a similar carve out for certain items like Chinese-made smartphones and laptops implemented by the Trump administration earlier this month.
The Chinese government is reportedly planning to exempt certain items from its 125% tit-for-tat … More
Key Facts
Citing an anonymous source, Reuters reported the Chinese Commerce Ministry task force is working on a list of U.S. imports that could be exempted from tariffs and has asked companies to submit any requests they may have.
The report also cited American Chamber of Commerce in China President Michael Hart, who said Beijing was asking companies for details about items they import from the U.S. and “cannot find anywhere else.”
Earlier on Friday, Chinese financial news outlet Caijing reported tariffs on eight chip and semiconductor-related imports from the U.S. were being waived, but the duties would remain in place for memory chips.
The report said that companies that have already paid duties on the exempted items between April 10 and 24 would be allowed to request refunds.
According to Bloomberg, Chinese companies have also been sharing supposed tariff-exempt lists, which include import codes for “key chemicals and chip-making components,” while the Reuters report cited unverified lists on Chinese social media mentioning 131 product categories.
The commerce ministry and customs officials in China have not made any official announcements about the purported exemptions.
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What Do We Know About The U.s.-China’s Tit-For-Tat Tariffs?
The trade war between the U.S. and China—which has included multiple rounds of escalatory tariffs—began earlier this month as President Donald Trump announced so-called ‘reciprocal tariffs’ against hundreds of countries, including a 34% tariff on Chinese imports. China retaliated by announcing additional 34% duties on imports from the U.S., which was followed by multiple rounds of escalating tariffs by both countries. At present, the Trump administration’s “reciprocal” tariffs on China stand at 125%, but the total tariff rate on imports from China is 145% after including an earlier 20% levy imposed by the White House for China’s alleged role in the fentanyl crisis. China’s tariff rate on U.S. goods is at 125% and Beijing has since then indicated that it will not respond to any further escalations in the tariff rate from the U.S., saying: “If the US continues to play the numbers game of tariffs, China will ignore it.”
What Chinese Imports Have Been Exempted From U.s. Tariffs?
Earlier this month, the U.S. Customs and Border Protection announced that various electronic products will be exempted from the Trump administration’s “reciprocal tariffs” on China and other countries—although 20% fentanyl tariff targeting Beijing would still apply. These exemptions cover electronic devices like smartphones, laptops, hard drives, computer chips (CPUs and GPUs), flat panel displays, among other things.
What Do We Know About U.s.-China Trade Talks
Earlier this week, President Donald Trump acknowledged that the current tariff rate against China were “very high” and suggested that they would “come down substantially” after trade negotiations. Trump even urged his Chinese counterpart Xi Jinping to come to the negotiating table, promising to be “very nice.” Beijing, however, rebuffed this offer saying no talks could happen until Washington rolled back its tariffs. On Thursday, Trump insisted that trade talks between both sides were taking place and said: “They had a meeting this morning.” The president refused to say who “they” were, but added: “We may reveal it later, but they had meetings this morning, and we’ve been meeting with China.” During its daily press briefing Friday, the Chinese foreign ministry denied this, saying “The United States and China are not engaged in consultations or talks on the tariff issue.” The ministry’s spokesperson then said the Trump administration must stop “misleading the public” on the matter.
Further Reading
China Demands Rollback On All Unilateral Tariffs As It Rebuffs Trump’s Offer To Negotiate (Forbes)
U.S. Futures And Asian Markets Rise After Trump Suggests China Tariffs Will ‘Come Down Substantially’ (Forbes)
