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China has created a list of US-made products exempted from 125% tariffs

China has begun discreetly notifying companies that certain US-made products will be exempt from its steep 125% retaliatory tariffs, meant to shield manufacturers from the consequences of a trade conflict with Washington, according to sources familiar with the matter.

According to a Wednesday Reuters exclusive, Chinese authorities have not publicly announced the exemptions. Beijing seemingly wants to ease the country’s economic strain without appearing to have accepted defeat from US tariffs. 

Two individuals with direct knowledge of the situation said the list of products exempt from tariffs is being communicated privately to firms. Many of these firms rely on American technologies and had previously lobbied for relief.

Pharmaceuticals, chips, and aircraft engines are already exempt

Prior to April 27, China had already granted public tariff exemptions on a limited selection of imports, including pharmaceuticals, microchips, and aircraft engines. However, the existence of an unpublished “whitelist” of US goods qualifying for exemptions had not been reported until now.