China exempts some U.S. imports from 125% tariff rate

Thomson Reuters

· Posted: Apr 25, 2025 9:27 AM EDT | Last Updated: 1 infinitesimal ago

China has exempted immoderate U.S. imports from its 125 per cent tariffs and is asking firms to identify critical goods they request levy-free, according to businesses that have been notified.

The move, which follows de-escalatory statements from Washington, signals that the world's 2 largest economies mightiness beryllium prepared to rein successful their conflict, which had frozen overmuch of the trade betwixt them and raised fears of a planetary recession. 

Beijing's exemptions — which concern groups anticipation mightiness widen to dozens of industries — pushed the U.S. dollar up slightly and lifted equity markets successful Hong Kong and Japan.

"As a quid-pro-quo move, it could supply a imaginable mode to de-escalate tensions," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Center, a think-tank.

But he cautioned: "It's wide that neither the U.S. nor China privation to beryllium the archetypal successful reaching retired for a deal."

China has not communicated publically connected immoderate exemptions.

U.S. President Donald Trump told Time mag successful an interview that U.S.-China talks were taking spot connected tariffs and that Chinese President Xi Jinping had called him. 

"He's called. And I don't deliberation that's a motion of weakness connected his behalf," Trump told the magazine. He did not accidental erstwhile Xi called oregon what the 2 leaders discussed.

Beijing has truthful acold disputed the U.S. characterization of talks — the Chinese embassy said again connected Friday that determination person been nary talks betwixt the 2 countries, adding successful a connection that the U.S. should "stop creating confusion."

WATCH | What a commercialized warfare could mean for the satellite order: 

A Friday connection by the Politburo, the Communist Party's elite decision-making body, focused connected efforts to maintain stability astatine location by supporting firms and workers astir affected by tariffs.

The readout, which followed the Politburo's regular monthly meeting, showed that Beijing was besides acceptable to hunker down and fight a commercialized warfare of attrition if needed to outlast Washington in enduring commercialized warfare pain.

A Ministry of Commerce task unit is collecting lists of items that could beryllium exempted from tariffs and is asking companies to taxable their ain requests, according to a person with cognition of that outreach.

The ministry said connected Thursday it had held a gathering with more than 80 overseas companies and concern chambers successful China to discuss the interaction of U.S. tariffs connected concern and the operation of overseas firms.

"The Chinese government, for example, has been asking our companies what benignant of things are you importing to China from the U.S. that you cannot find anyplace other and truthful would shut down your proviso chain," American Chamber of Commerce successful China President Michael Hart said.

Hart added immoderate subordinate pharmaceutical companies had reported being capable to import drugs to China without tariffs. He believed the exemptions were drug-specific, not industry-wide.

The main enforcement of French craft motor shaper Safran said connected Friday it had been informed the erstwhile night that China had granted tariff exemptions connected "a definite fig of aerospace instrumentality parts" including engines and landing gear.

The tariff exemptions nether information by Beijing could provide outgo alleviation for companies successful China and instrumentality unit off U.S. exports astatine a clip erstwhile the Trump medication has shown signs of wanting to marque a woody with Beijing.

The European Union Chamber of Commerce successful China besides said it had raised the contented of tariff exemptions with the commerce ministry and was awaiting a response.

"Many of our subordinate companies are importantly impacted by the tariffs connected captious components imported from the U.S.," President Jens Eskelund said.

A database of 131 categories of products said to beryllium under consideration for tariff exemptions was circulating connected Chinese social media platforms and among immoderate businesses and trade groups connected Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines.

WATCH | The escalation of an planetary commercialized war: 

Huatai Securities said the database corresponded to $45 cardinal US worthy of imports to China past year.

China's customs bureau and Ministry of Commerce did not reply to requests for comment. China's overseas ministry said it was not acquainted with tariff exemption plans, redirecting queries to "relevant authorities."

Lasting fight

While Washington has said the commercialized standoff with China is economically untenable and already offered tariff exemptions to some physics goods, China has repeatedly said it is willing to combat to the extremity unless the U.S. lifts its 145 per cent tariffs.

But China's system headed into the commercialized warfare with rising unemployment, deflationary pressures and heightened interest that a mounting backlog of unsold exports could thrust home prices even lower.

While China ran a trillion-dollar commercialized surplus successful 2024, it also relies connected the United States for cardinal imports, including the petrochemical ethane needed to marque plastics and immoderate drugs.

Big pharmaceutical companies including AstraZeneca and GSK person astatine slightest 1 manufacturing tract in the U.S. for drugs sold successful China, according to Chinese government data.

Major ethane processors person already sought tariff waivers from Beijing due to the fact that the U.S. is the lone supplier.