China is considering exempting certain imports from the U.S. from the 125 percent tariffs it imposed earlier this month, as retaliatory measures between the world’s two largest economies continue, multiple outlets reported on Friday.
Chinese authorities are weighing whether to lift import taxes from medical equipment and some chemicals, such as ethane, according to Bloomberg News. Additionally, Beijing is also considering striking down tariffs on plane leases.
“There are some companies who have said that if a long-term tariff war continued, their business model would not work in China and we would see them exit,” Michael Hart, president of the American Chamber of Commerce in China, told The New York Times. “We shared that with the Chinese government because they are of course trying to foster foreign direct investment.”
Hart noted to The Times that lifesaving drugs and some other health care products present concerns for the nation’s supply chains.
China’s Commerce Ministry is gathering a list of items that might be exempt from the high-ticket tariffs and is asking corporations to share their own requests, Reuters reported Friday, citing a person with knowledge of that outreach.
President Trump escalated the trade war with nearly every country around the world, including China. He raised import taxes on goods coming into the U.S. from China to 125 percent earlier this month, on top of an existing 20 percent. Beijing later retaliated, slapping a 125 percent duty on U.S. products.
The president — who paused most reciprocal tariffs for 90 days, with the exception of China — has signaled in recent days that negotiations are underway and he could lessen the taxes levied on China.
Chinese officials debunked the notion on Thursday, saying “any claims about the progress of China-U.S. trade negotiations are groundless as trying to catch the wind and have no factual basis.”
Trump pushed back, telling reporters at the White House on Thursday that the administration officials “had a meeting this morning” with their Chinese counterparts.
“It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” he said.
