China Eases U.S. Trade War Impact with Tariff Exemptions

China has granted exemptions on U.S. imports from its 125% tariffs, signaling an attempt to alleviate economic strains caused by its trade war with the United States. The measure aims to ease costs for various industries and underscore a potential shift towards negotiations for tariff relief.

China has announced exemptions for certain U.S. imports from its 125% tariffs, a move seen as an effort to reduce the economic strain of its ongoing trade war with the United States. According to businesses notified, these exemptions signal a cautious step by Beijing towards resolving the conflict.

The potential expansion of tariff exemptions across multiple industries marks a shift in China's strategy. This development comes after a similar change in tone from Washington, which positively affected currency and equity markets in Hong Kong and Japan. The Ministry of Commerce is actively engaging with businesses to compile lists of goods eligible for exemptions.

Prominent companies, such as the French aerospace manufacturer Safran, have already benefited from exemptions on specific aerospace components. The initiative aims to mitigate costs for industries ranging from pharmaceuticals to aviation and could reduce pressure on U.S. exports. As both nations show openness to negotiations, this could be a pivotal moment for an economic agreement.

(With inputs from agencies.)