China Releases List of US-Made Products Exempted from 125% Tariffs

China has compiled a list of American-made goods that will be excluded from its 125 per cent tariffs and is discreetly informing businesses about this policy, according to two sources familiar with the situation, as Beijing aims to mitigate the effects of its trade conflict with Washington. According to a report by Reuters on Friday, China has already provided tariff exemptions for certain products, such as specific pharmaceuticals, microchips, and aircraft engines, and was requesting companies to specify essential goods they require to be exempt from tariffs. Nevertheless, the presence of a so-called 'whitelist' had not been reported before. The subtle strategy lets Beijing, which has consistently asserted its readiness to combat until the U.S. removes its 145 per cent tariffs, uphold its public statements while secretly making tangible moves to offer concessions.

The two sources, who requested anonymity due to the information being confidential, stated that it was not instantly apparent how many products were on the list or which ones, as the authorities have not disclosed this information publicly. Authorities are instead reaching out to companies privately to inform them about a list of product categories that would be excluded from tariffs, based on information from a source employed at a pharmaceutical company marketing U.S.-produced medicines in China. The Shanghai Pudong government reached out to the company on Monday regarding the list, the source stated, mentioning that the firm had earlier advocated for tariff exemptions due to its dependence on U.S. technologies for certain products. "We still require numerous technologies from the U.S.," the individual mentioned.

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An alternate source mentioned that certain companies have been requested to privately reach out to officials to check if their imported goods meet the criteria for the exemption. The compilation of exempt products seems to be expanding as well: According to Reuters, China has eliminated tariffs on ethane imports from the U.S. Significant ethane processors had already requested tariff exemptions from Beijing since the U.S. is the sole supplier. U.S. President Donald Trump mentioned on Tuesday that he believed a trade agreement with China was imminent. "But it's going to be just an agreement," he stated. China's ministries of commerce and customs did not promptly reply to requests for remarks. Two additional sources indicated that China is surveying businesses to assess the effects of the tariff conflict.

During a recent meeting, officials in Eastern China requested a foreign business lobby group to "report all significant issues arising from tariff conflicts to assess particular instances," according to a source familiar with the situation who spoke to Reuters. The individual chose not to disclose the city where the officials conducted the meeting since the assembly was not open to the public. Officials in Xiamen, a southeastern Fujian city known for its significant port and electronics manufacturing base, also distributed a survey on Sunday to businesses to evaluate the effects of tariffs, according to a source familiar with the situation. The survey was distributed to textile companies and semiconductor firms and featured inquiries about products they export to the U.S., as well as the anticipated effects of U.S. and Chinese tariffs on their operations, the source stated.