China considers exempting some US goods from retaliatory tariffs - Bloomberg

China considers exempting some US goods from retaliatory tariffs - Bloomberg

China has indicated it may exempt certain US goods from retaliatory tariffs, according to recent developments. He Yadong, spokesperson for the Ministry of Commerce, stated that China is demanding the US revoke all unilateral tariffs and that there are no ongoing talks to reach a trade deal. This stance suggests that President Trump's recent comments about potentially lowering tariffs on China are unlikely to ease tensions [1].

Meanwhile, US officials are weighing a reduction of tariffs targeting automakers, following intense lobbying from industry executives. One option under consideration is to spare automobiles and parts already subject to some tariffs from additional duties. Another possibility is to exempt auto parts that comply with the US-Mexico-Canada trade pact. This move aims to narrow the scope of levies and mitigate the impact on jobs and profits [2].

The resilience of Chinese trade flows in April, despite the imposition of high duties, is noteworthy. The continued strength of trade is attributed to the 90-day delay in the US's imposition of reciprocal duties on dozens of other partners and the exemption of smartphones, computers, and other electronics from these tariffs. This has provided some relief for Chinese exporters, covering more than $100 billion in goods [3].

Economists predict that US-China bilateral trade is set to decouple, with US exports to China expected to fall rapidly, but the decline in US imports from China expected to be more gradual. This could potentially lead to an enlarged US trade deficit with China, rather than a reduction in the trade deficit [3].

The potential exemptions from retaliatory tariffs by China could signal a shift in trade dynamics between the two economic giants. However, the ongoing tariff war continues to pose significant challenges to global trade flows.

References:
[1] https://www.bloomberg.com/news/newsletters/2025-04-24/china-demands-us-drop-all-unilateral-tariffs-and-denies-talks
[2] https://www.investing.com/news/stock-market-news/trump-to-exempt-carmakers-from-some-us-tariffs-ft-says-3999936
[3] https://ca.finance.yahoo.com/news/china-trade-immune-far-tariffs-052910892.html