China is considering exempting tariffs on some U.S. products: Report

China is considering exemption from certain imports from the 125% tariff imposed earlier this month as retaliation measures continue between the world’s two largest economies, according to multiple media reports.

According to Bloomberg News, Chinese authorities are weighing whether to withdraw import taxes from medical devices and certain chemicals, such as ethane. In addition, Beijing is considering reducing tariffs on aircraft rentals.

“Some companies say that if a long-term tariff war continues, their business model will not work in China and we will see them withdraw,” Michael Hart, president of the U.S. Chamber of Commerce in China, told The New York Times. “We share this with the Chinese government because of course they are working to cultivate FDI.”

Hart noted that life-saving drugs and some other healthcare products raised concerns about the U.S. supply chain.

Reuters reported on Friday that China’s Ministry of Commerce is collecting a list of items that may be exempt from high-priced tariffs and asking companies to share their requirements.

President Trump has escalated the trade war with almost every country around the world, including China. He filed an import tax on goods entering the United States from China to 125%, but not the current 20%. Beijing later retaliated and held 125% of its responsibility for U.S. products.

The president – most reciprocity tariffs outside China have been suspended for 90 days – said in recent days that negotiations are underway and he could ease the taxes imposed on China.

“Any claim on progress in China’s U.S. trade negotiations is unfounded because there is no factual basis for trying to capture the wind,” Chinese officials said on Thursday.

Trump pushed backwards, telling reporters at the White House on Thursday that administration officials had a meeting with their Chinese counterparts “this morning.”

“Who are they. We may reveal later, but they held a meeting this morning and we have been meeting with China,” he said.

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