China Quietly Removes Tariffs on $40 Billion of U.S. Goods
In a quiet but important move, China has removed tariffs on about $40 billion worth of U.S. imports—roughly a quarter of all American goods sold to China. According to Bloomberg, this step seems aimed at reducing trade tensions and possibly restarting trade talks with the U.S.
The exemptions cover 131 U.S. products, including medicine, computer chips, airplane engines, and industrial chemicals. Chinese companies were told they can apply for waivers on these goods, allowing them to avoid the high tariffs that have been in place since the U.S.–China trade war began.
China’s economy is currently struggling with slower growth, falling factory activity, and higher unemployment. By lifting tariffs on important U.S. goods, the Chinese government may be trying to help local businesses and show it is open to discussions with the U.S.
Financial markets reacted positively. U.S. stock indexes like the S&P 500 and Nasdaq went up, and Chinese exchange-traded funds like FXI and MCHI also gained value—showing investors are hopeful about improved U.S.–China relations.
China’s Commerce Ministry said it is reviewing U.S. interest in restarting talks, but stressed that the U.S. must lower its own tariffs first for real progress to happen.
This move could be a key moment in the long-running trade dispute, with possible big effects on global trade, technology, and the economy.
