In a quiet but strategic move, China has begun informing companies of a new list of US-made products that will be exempted from its punishing 125% tariffs, according to two people familiar with the development. The move will cushion Chinese companies that rely on American products, saving them from the tariff impact.
The unpublished list, called a ‘whitelist’, has not been publicly disclosed, as Chinese authorities sought to limit the damage from retaliatory tariffs that have hit critical imports. Sources told Reuters that companies have been asked to identify essential US goods, such as pharmaceuticals, microchips and aircraft engines, for which tariff waivers could be considered.
According to a source at a pharmaceutical company selling American-made drugs in China, officials from the Shanghai Pudong government contacted the firm on Monday with news of a product classification list exempt from tariffs. The source, whose firm had lobbied for relief due to its reliance on US technology, said, “We still have many technologies we need from the US”
Another source went on to reveal that some companies have been encouraged to proactively contact the government to see whether their imported products qualify for exemption.
The exemption list appears to be expanding. On Tuesday, the Asian giant had waived tariffs on ethane imports from the US, following lobbying by major processors who depend solely on American supplies.
While Beijing has remained officially silent, with no response yet to come from China’s commerce and customs ministries — the behind-the-scenes activity is being interpreted as a sign of flexibility amid ongoing trade tensions.
The policy shift followed a renewed escalation in the tariff battle. Earlier, US President Donald Trump brushed off concerns about the economic impact of steep tariffs, telling ABC News, “China probably will eat those tariffs ... They were ripping us off like nobody's ever ripped us off … They're not doing that anymore.”
However, signs of strain are already showing as Chinese manufacturing activity declined in April, reversing modest gains made in March. The slowdown coincided with the latest round of US tariffs and rising uncertainty for exporters.
Beijing on Tuesday lashed out at Washington’s trade tactics, accusing the US of “bullying,” “deception,” and engaging in “economic coercion.”
Meanwhile, Chinese authorities are trying to have an idea of the broader impact of the tariff war on domestic and foreign firms. In one case, a foreign business lobby group was asked by officials in eastern China to report “critical situations” stemming from the tariffs so individual cases could be taken into consideration.
The unpublished list, called a ‘whitelist’, has not been publicly disclosed, as Chinese authorities sought to limit the damage from retaliatory tariffs that have hit critical imports. Sources told Reuters that companies have been asked to identify essential US goods, such as pharmaceuticals, microchips and aircraft engines, for which tariff waivers could be considered.
According to a source at a pharmaceutical company selling American-made drugs in China, officials from the Shanghai Pudong government contacted the firm on Monday with news of a product classification list exempt from tariffs. The source, whose firm had lobbied for relief due to its reliance on US technology, said, “We still have many technologies we need from the US”
Another source went on to reveal that some companies have been encouraged to proactively contact the government to see whether their imported products qualify for exemption.
The exemption list appears to be expanding. On Tuesday, the Asian giant had waived tariffs on ethane imports from the US, following lobbying by major processors who depend solely on American supplies.
While Beijing has remained officially silent, with no response yet to come from China’s commerce and customs ministries — the behind-the-scenes activity is being interpreted as a sign of flexibility amid ongoing trade tensions.
The policy shift followed a renewed escalation in the tariff battle. Earlier, US President Donald Trump brushed off concerns about the economic impact of steep tariffs, telling ABC News, “China probably will eat those tariffs ... They were ripping us off like nobody's ever ripped us off … They're not doing that anymore.”
However, signs of strain are already showing as Chinese manufacturing activity declined in April, reversing modest gains made in March. The slowdown coincided with the latest round of US tariffs and rising uncertainty for exporters.
Beijing on Tuesday lashed out at Washington’s trade tactics, accusing the US of “bullying,” “deception,” and engaging in “economic coercion.”
Meanwhile, Chinese authorities are trying to have an idea of the broader impact of the tariff war on domestic and foreign firms. In one case, a foreign business lobby group was asked by officials in eastern China to report “critical situations” stemming from the tariffs so individual cases could be taken into consideration.
You may also like
14 killed as massive blaze turns Kolkata hotel into gas chamber
Death toll rises to 39 in sectarian clashes near Damascus as ceasefire falters
"This is the victory of crores of people of India": Jairam Ramesh on Centre announcing caste census
Saudi, Qatar urge India, Pakistan to defuse tensions after Pahalgam attack
British woman found beaten to death in French village with 'five deep wounds'
