Beijing's Tariff Exemption Move Eases Trade Tensions Amid Economic Concerns

China is contemplating exempting select U.S. imports from its 125% tariffs, signaling concerns over economic impacts from the trade war with Washington. A list of potential exemptions includes semiconductors and pharmaceuticals. The exemptions aim to mitigate economic strain while providing relief to U.S. suppliers and Chinese businesses struggling with supply chain disruptions.

China is considering offering exemptions on certain U.S. imports from its 125% tariffs, the most significant indication yet of Beijing's concern over the economic fallout from the ongoing trade conflict with Washington. A Ministry of Commerce taskforce is collecting lists from businesses to identify eligible goods for tariff exemption, according to a source.

Reports from Caijing have revealed that Beijing is eyeing eight semiconductor-related items for exemption, although memory chips are not included. Michael Hart, President of the American Chamber of Commerce in China, noted that Beijing is querying U.S. firms about key imports not found elsewhere to safeguard supply chains.

Hart mentioned that some chamber members recently imported goods without new tariff imposition. A circulating list among trade groups details 131 potential product categories for exemption, including vaccines and chemicals. As China's economic outlook dims, exemptions provide a strategic relief, balancing trade tensions and regional economic stability.

(With inputs from agencies.)