China Exempts Some US Imports From 125% Tariffs

In what could be a good sign for the brewing trade war between both sides, China has reportedly exempted some US imports from its 125% reciprocal tariffs. Indeed, the country is reportedly asking businesses to identify “critical goods” to protect against an economic fallout, according to a Reuters report.

The development comes as both sides are embroiled in an ongoing tariff war. Moreover, there have been conflicting reports on the ongoing discussions. US President Trump has stated that both sides are “actively” working toward a resolution. Alternatively, China has affirmed that the two countries are “not engaged in any consultation or negotiations” regarding the tariffs.

JUST IN: China exempts some US imports from 125% tariffs, Reuters reports.

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China Exempts Some US Goods as Trade War Concerns Continue

Since the start of April, the global economy has sought to navigate the fallout of an increased risk of a trade war between the US and China. The former introduced its own set of ‘Liberation Day’ tariffs on all trading partners. Moreover, the latter’s retaliatory action led the United States to increase those import duties to a height of 245%.

The ongoing dispute has many concerned, with both sides now taking precautions to protect their economy. Indeed, China has taken that step by exempting some US imports from its 12% tariffs, according to a recent report. Moreover, the move has given many hope that it could be a sign of easing tensions.

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“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions,” Conference Board’s China Center think tank advisor Alfredo Mantufar-Helo said. Moreover, they follow the recent admission by the US that the tariff dispute is not sustainable.

US Treasury Secretary Scott Bessent recently signaled to reporters that the United States was open to de-escalation. “As I said yesterday, this is the equivalent of an embargo, and a break between two countries in trade does not suit anyone’s interest,” he said.

Although they have signaled that no substantive talks have taken place, China recently reiterated it is open to negotiations. However, spokesperson Guo Jiakun also denied reports that those negotiations are happening. Moreover, he added, “If it’s a fight, we will fight to the end.”