China Creates List Of US-Made Goods Exempt From 125% Tariffs: Report
According to the sources in the report, Chinese authorities have begun contacting firms directly to share details of a confidential list of product categories eligible for tariff relief
China is quietly informing select companies that certain US-made goods will be exempted from its steep 125 per cent tariffs, according to a Reuters report citing two individuals familiar with the matter. The move signals a behind-the-scenes attempt by China to mitigate the domestic fallout from its prolonged trade standoff with the United States, even as it maintains a firm public stance.
According to the sources in the report, Chinese authorities have begun contacting firms directly to share details of a confidential list of product categories eligible for tariff relief. While China has previously granted exemptions for specific items such as pharmaceuticals, microchips, and aircraft engines, this is the first indication of a broader and more structured exemption mechanism, reportedly referred to as a "whitelist."
Reliance On US Technology
One of the sources in the report, employed at a pharmaceutical company reliant on US technology, said their firm was approached by the Shanghai Pudong district government earlier this week. The contact followed earlier lobbying efforts by the company seeking relief from punitive tariffs, which had significantly affected their operations. “We still have many technologies we need from the US,” the source noted in the report.
Another individual familiar with the matter said in the report that some companies have been advised to proactively reach out to local authorities to check whether their imports might qualify for exemption under the new guidance.
China's quiet approach contrasts with its public rhetoric, where officials have repeatedly signaled readiness to endure a prolonged trade dispute unless the US rolls back its 145 per cent tariffs. The discreet exemptions allow Beijing to address industry concerns without undermining its negotiation posture.
The list appears to be evolving. Earlier this week, Beijing lifted tariffs on US ethane imports, a move seen as essential since American suppliers dominate that market segment.
Meanwhile, US President Donald Trump stated Tuesday that he believed a trade agreement with China was possible, but emphasized that any deal must be equitable: “But it's going to be a fair deal,” he said.
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