By John Meyer, consultant in financial affairs – Eurasia Business News, April 26, 2025. Article No 1503.
China has quietly exempted certain U.S.-made products from its steep retaliatory tariffs, particularly those goods for which it lacks domestic alternatives or substitutes. This includes various semiconductors, chip manufacturing machinery, medical supplies, aviation components such as jet engines and landing gear, and some chemicals including ethane used in petrochemical production.
The exemptions come after China imposed a 125% tariff on many U.S. goods in response to the U.S. raising tariffs on Chinese products to 145%. Despite the high tariffs, Beijing has been canvassing companies to identify critical goods that should be exempt from these duties to avoid harming its own industries that depend on these imports.
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These moves signal Beijing’s concern about the economic fallout from the ongoing trade war with the U.S., including rising unemployment, deflationary pressures, and weak domestic demand. The exemptions are seen as a pragmatic step to protect key sectors such as technology and healthcare while maintaining pressure in the trade dispute.
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China has not made any public announcements about these exemptions, and Chinese officials have denied that formal tariff negotiations with the U.S. are underway, despite more conciliatory rhetoric from Washington. The exemptions appear to be a discreet effort to shield vital industries and possibly open a pathway to ease tensions without fully committing to a deal.
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China is quietly waiving tariffs on select U.S. products critical to its economy, including semiconductors, medical equipment, chemicals, and aviation parts, reflecting a strategic adjustment amid the trade conflict’s economic pressures.
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© Copyright 2025 – Eurasia Business News. Article no. 1502.
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