China Signals Possible "Truce" in Trade War as It Considers Tariff Exemptions on Key U.S. Goods

China Signals Possible "Truce" in Trade War as It Considers Tariff Exemptions on Key U.S. Goods

 

Beijing, April 25, 2025 — China may be sending a positive signal amid ongoing trade tensions, as Bloomberg reports that Beijing is considering suspending import tariffs — as high as 125% — on certain key U.S. goods. The items under review include medical equipment, semiconductors, and industrial chemicals such as ethane, reflecting growing economic pressure from the prolonged trade war.

 

Sources familiar with the matter revealed that Chinese authorities are discussing lifting tariffs on essential imports such as MRI and ultrasound machines, as well as ethane, a critical component in plastic manufacturing. The government is also reportedly considering waiving tariffs on aircraft leasing, a significant cost burden for Chinese airlines that rely heavily on leased aircraft from foreign providers.

 

🔁 U.S. Has Also Loosened Restrictions

This move by Beijing follows a similar step by Washington. Earlier this month, the U.S. administration under President Donald Trump exempted key Chinese electronics — including smartphones, laptops, chips, and flat screens — from the 145% retaliatory tariff previously imposed. The relaxation is seen as a “strategic reprieve” to ease pressure on major U.S. tech firms like Apple and Nvidia.

 

💡 China's Economy Still Relies on U.S. Technology

Despite being a global manufacturing powerhouse, China continues to depend on specific U.S. technologies. Ethane imports remain crucial for several Chinese plastic producers, and high-end medical devices — such as MRI and ultrasound scanners — are still predominantly sourced from American companies like GE Healthcare.

According to Caijing, a Chinese financial news outlet, Beijing is also considering waiving tariffs on at least eight semiconductor-related product categories, though memory chips are not yet included in the exemption list.

 

📌 Summary:

Both China and the U.S. are showing early signs of softening their trade stances, possibly due to mounting economic pressures. With China reviewing industrial product tariffs and the U.S. easing restrictions on tech imports, these developments may pave the way for broader negotiations — especially at a time when the global economy remains fragile and highly interconnected.