Some Chinese firms claim U.S. semiconductor imports exempt from additional tariffs

Some Chinese firms claim U.S. semiconductor imports exempt from additional tariffs

Chinese firms are reportedly claiming that certain U.S. semiconductor imports are exempt from additional tariffs, according to recent developments in the ongoing trade tensions between the United States and China. This comes as the Chinese government has been actively seeking ways to mitigate the impact of U.S. tariffs on its economy.

In a recent announcement, the Chinese Ministry of Commerce stated that a significant number of U.S. semiconductor imports are eligible for tariff exemptions under specific conditions. The ministry cited a clause in the U.S.-China trade agreement that allows for exemptions on certain goods, including semiconductors, if they meet specific criteria related to technology and innovation.

The announcement follows a series of stock buyback plans by Chinese companies aimed at offsetting the market impact from U.S. tariffs. As of April 24, 2025, buyback plans announced in China have reached the highest level since a stock rout in February 2024, totaling 44.1 billion yuan ($6 billion) [2]. This is a sign that Chinese companies are putting in concerted efforts to stabilize investor sentiment and offset the negative effects of the trade war.

The U.S. government, under the administration of President Donald Trump, has imposed tariffs of up to 145% on Chinese imports. In contrast, South Korean exports to the U.S. currently face a relatively moderate 10% tariff, as part of a 90-day suspension of reciprocal duties [1]. To exploit this disparity, Chinese firms have been allegedly disguising the origin of their products, routing them through South Korea and falsely labeling them as locally made. This practice has been a significant concern for South Korean authorities, who have warned that such practices damage South Korea's credibility in global markets.

The news comes as trade negotiations between South Korea and the U.S. are ongoing. A delegation from South Korea is meeting with its U.S. counterparts on Thursday to discuss various issues, including shipbuilding, energy, and defense costs [1]. The Trump administration is pushing for stronger measures during the talks, urging allies not to serve as backdoors for Chinese products.

China, however, has rejected unilateral pressure, vowing to take "reciprocal countermeasures" if its interests are compromised. The White House may consider reducing tariffs to between 50-65%, but any reductions will depend on progress in direct talks with Beijing.

References:

[1] https://www.business-standard.com/world-news/made-in-korea-mislabel-chinese-goods-bypass-us-trump-tariff-125042400941_1.html
[2] https://www.bloomberg.com/news/articles/2025-04-24/china-s-stock-buyback-plans-hit-14-month-high-as-firms-pitch-in