China's Quiet Moves: Navigating the Trade War with U.S. Product Exemptions

China is easing the impact of its trade war with the U.S. by creating a list of exempted U.S.-made products from its 125% tariffs, quietly informing companies. This strategy allows China to maintain public stances while privately alleviating tensions with waivers on select crucial imports.

China has initiated a strategic move to mitigate its ongoing trade conflict with the United States by developing a list of U.S.-made products exempted from a hefty 125% tariff. According to sources familiar with the matter, the Chinese authorities have begun discreetly informing companies about this policy shift as part of a broader effort to soften the trade war's impact.

The announcement includes tariff exemptions on certain key sectors, such as pharmaceuticals, microchips, and aircraft engines, while companies are encouraged to communicate essential U.S.-origin goods necessary for operational continuity. This maneuver permits Beijing to uphold its firm public stance against U.S. tariffs while pragmatically providing concessions behind the scenes.

While details of the 'whitelist' remain undisclosed, firms engaged in U.S. trade are subtly notified about the exempted classifications. Sources revealed that the list's scope is expanding, with China now waiving tariffs on U.S. ethane imports. Meanwhile, assessments of the tariff war's impact are underway to evaluate critical engagements caused by these economic tensions.

(With inputs from agencies.)