China is taking steps to ease the impact of its trade war with the United States by exempting a number of American imports from tariffs. According to a report from Bloomberg, this move comes as the Chinese economy faces significant challenges due to ongoing trade tensions.
A list circulating among businesses indicates that 131 items, including pharmaceuticals and industrial chemicals, are no longer subject to tariffs. These exemptions account for about 24% of U.S. exports to China, which is valued at approximately $40 billion. This change suggests that China is feeling the pressure from the trade war and is trying to soften the economic blow.
U.S. Treasury Secretary Scott Bessent recently highlighted the struggles of the Chinese economy, stating that it is slowing down significantly. He pointed to disappointing gross domestic product figures and warned of potential job losses ranging from 5 to 10 million. Bessent emphasized that the current trade conflict is unsustainable for China.
Despite the high tariffs imposed by both countries—145% from the U.S. and 125% from China—there are signs of a potential thaw in relations. President Trump has noted that China has reached out multiple times about trade negotiations. Meanwhile, the Chinese government expressed a desire for talks, urging the U.S. to reconsider its tariffs and show goodwill.
The Chinese Commerce Ministry stated that it is currently assessing the situation and is open to discussions. However, they emphasized that the U.S. must be willing to cancel its unilateral tariffs for meaningful dialogue to occur.
This development could lead to reduced tensions between the two nations and pave the way for future negotiations. As both sides explore ways to address their trade issues, the exemptions may serve as a crucial step in finding common ground.