China is contemplating the possibility of exempting select imports from the US from the 125% tariffs it enacted earlier this month as the retaliatory measures between the two largest economies persist. Several sources reported this on Friday.
Chinese officials are deliberating the possibility of increasing import duties on certain chemicals, including medical instruments and ethane. Bloomberg News also indicated that Beijing is weighing the imposition of tariffs on aircraft leases.
Michael Hart from the US Chamber of Commerce in China mentioned to The New York Times, “We communicated this to the Chinese authorities as they clearly aim to boost foreign direct investment.”
Hart highlighted concerns regarding the supply chain of essential medications and various healthcare products in the country.
According to a report by Reuters on Friday, China’s Commerce Ministry has compiled a list of products that may be eligible for tariff exemptions and has solicited businesses for their proposals.
President Trump intensified trade conflicts with nearly every nation, including China, by increasing import duties on goods arriving from China earlier this month, on top of the existing 20%. In response, Beijing retaliated with a 125% tariff on US goods.
Aside from China, the president, who has paused most reciprocal tariffs for 90 days, suggested that recent negotiations indicate a possibility for tax reductions on Chinese imports.
A Chinese official remarked on Thursday, “The assertions of progress in trade discussions between China and the US are baseless and lack credibility.”
Trump has backed down and informed reporters at the White House on Thursday that officials from his administration “had a meeting this morning” with their Chinese counterparts.
“It doesn’t matter who ‘they’ are. I may disclose that later, but they had a meeting this morning, and they are engaging with China,” he stated.
