China has quietly exempted around $40 billion worth of U.S. goods from tariffs, Bloomberg reports, in a strategic bid to ease the impact of the trade war on its slowing economy. A list of 131 exempted items, including pharmaceuticals and industrial chemicals, has been circulating among traders, though no official government confirmation has been issued.
Key details:
- The exemptions cover about 24% of China’s total U.S. imports in 2024, based on Bloomberg’s analysis of customs data.
- At least six Chinese companies have already imported U.S. goods from the list without paying tariffs.
- China began consulting foreign firms in early April to identify essential U.S. products that are hard to replace.
What’s next:
The list is fluid, with more items possibly added or removed depending on China’s evolving needs. Bloomberg reports that medical devices and additional industrial chemicals are among categories under consideration for tariff relief. China’s factory activity has seen its sharpest contraction since December 2023, with major banks cutting growth forecasts to around 4% or lower, missing Beijing’s 5% target.
Wu Xinbo of Fudan University noted that, while unconfirmed, the exemptions fit China’s broader goal of minimizing self-inflicted economic damage.
The move mirrors past U.S. actions — like exempting smartphones from tariffs — signaling pragmatism over confrontation as both nations navigate escalating tensions.
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