China covertly waives tariffs on a few US-made goods
According to sources, China has exempted several U.S. imports it would struggle to get from elsewhere from its retaliatory taxes. Chinese authorities have advised some U.S. importers they will waive the latest 125% tariff rate increases. People claimed these products include semiconductors, chipmaking equipment, medical products, and aviation parts. The carve-outs show China’s economic vulnerabilities. Chinese high technology, aerospace, and pharmaceutical industries depend on American inputs.
The Trump administration also exempted China-made smartphones, laptops, and other gadgets from its “reciprocal tariffs” earlier this month, acknowledging the U.S.’s dependence on China. Beijing replied with targeted tariffs on energy and car imports after Trump imposed 20% extra taxes on all Chinese imports early in his second term. Trump’s “Liberation Day” tariffs on April 2 added 34% to all Chinese goods, imposing across-the-board taxes on U.S. goods. Beijing then matched each of Trump’s tariff increases, raising its total duty on U.S. imports to 125%.
Starting April 24, Chinese customs hiked taxes on eight categories of U.S.-made chips, including central-processing units, according to two semiconductor merchants. U.S. memory chip taxes remain in China, they added. They claimed many Intel and Texas Instruments chip products are immune from tariffs, while some Micron Technology products made in the U.S. will remain subject. Some said Beijing has a list of U.S. imports it will eliminate tariffs on. They also listed quartz, ethane, lithography equipment, helicopters, and vaccinations as commodities under consideration. Participants warned that the list may vary during talks.
As the tariff war between Washington and Beijing escalates, Chinese officials are polling firms and industry groups to determine which U.S. items should be tariff-free to preserve China’s interests, individuals say. One person said Beijing has not publicly announced its tariff exemptions to hide its structural vulnerabilities and allow for future adjustment and discussion. Chinese government agencies have coordinated under the Customs Tariff Commission of the State Council, the cabinet.
They wish to avoid economic damage from Chinese tariffs “Michael Hart, head of the American Chamber of Commerce in China, which includes Boeing, Honeywell, and Qualcomm. Hart said Beijing had been asking U.S. companies doing business in China what components they import that are unavailable elsewhere. Hart said pharmaceutical businesses were reporting that some of their shipments to China were exempt from the 125% U.S. goods tax. “China still maintains 125% tariffs, but looks to be exempting vital products for their economy,” Hart added. “If we understand this correctly, China is definitely mapping and regulating their supply chain to keep out U.S. products with other substitutes but allow in those they need and can’t replace.”
China’s aviation authority has ordered some airlines to stop buying U.S. planes and parts. With engine exemptions, the country can maintain aircraft maintenance and manufacture. Comac, a Chinese plane manufacturer, uses foreign supply chains. In recent weeks, at least three Boeing aircraft scheduled for delivery to Xiamen Airlines and Air China have returned to the U.S. One source claimed Chinese officials are considering waiving tariffs for Chinese carriers that lease U.S. jets. On an earnings call Friday, Safran CEO Olivier Andries told analysts that China was exempting duties on engine, landing gear, and other parts deliveries.
