Catenaa, Thursday, May 01, 2025- China has quietly created a list of US-made goods exempt from its new 125% retaliatory tariffs, privately informing select companies of the policy shift, two sources familiar with the matter told Reuters.
The move signals a calibrated effort by Beijing to reduce domestic pressure from the ongoing trade war without altering its tough public stance.
The exemptions, previously granted for select pharmaceuticals, microchips and aircraft engines, have reportedly been expanded. The full scope of the so-called “whitelist” remains undisclosed.
However, some companies have been directly contacted by local authorities, including the Shanghai Pudong government, and notified that specific US product categories could qualify for tariff waivers.
One pharmaceutical company representative said the firm, which depends on US technologies, had previously lobbied for such exemptions. “We still have many technologies we need from the US,” the person said.
Sources say Beijing has encouraged some firms to proactively inquire about potential eligibility. China also recently waived tariffs on US ethane imports, following requests from processors citing the US as their only source.
While the commerce and customs ministries have not publicly acknowledged the list, China appears to be quietly surveying companies to evaluate the broader economic fallout of the tariff war. Officials in regions like Xiamen and Eastern China have reportedly distributed impact surveys to local textile and semiconductor firms.
Despite the tension, US President Donald Trump on Tuesday expressed optimism over a possible new trade deal with China, calling for fairness in any agreement.
