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China Expands Secret Tariff Exemption List for U.S. Goods

Beijing privately notifies firms of growing exemptions while surveying businesses on trade war impacts, maintaining a hardline public stance.

President Donald Trump looks on during a cabinet meeting in the Cabinet Room of the White House on April 30, 2025
A Chinese national flag is seen in the foreground with container ships, cranes, and stacked shipping containers at the Yantian International Container Terminal under cloudy skies, on April 12, 2025 in Shenzhen, China.
A general view shows container terminal in Hong Kong, China, April 23, 2025. REUTERS/Tyrone Siu/File Photo
Packages seen in the home of Phillip Dampier, a 57-year-old who orders from Temu and other Chinese e-commerce sites.

Overview

  • China has created a confidential 'whitelist' of U.S. products exempt from its 125% retaliatory tariffs, notifying select companies privately.
  • The exemption list includes pharmaceuticals, microchips, aircraft engines, and recently added U.S. ethane imports, with more goods reportedly being considered.
  • Chinese authorities are surveying businesses, including through formal questionnaires, to assess the economic impact of the trade war and identify critical goods for exemptions.
  • Beijing continues to publicly emphasize its readiness to 'fight till the end' while privately offering tariff concessions to stabilize key sectors.
  • U.S. President Donald Trump has expressed optimism about a potential trade deal, though both sides maintain conflicting narratives on the status of negotiations.