China considers exempting some US goods from 125% tariffs- Bloomberg

China’s government is weighing the exemption of some US goods from its 125% import tariffs, Bloomberg noted, Report informs.

Officials are considering exempting levies on medical equipment and some industrial chemicals like ethane, Bloomberg said, citing people familiar with the matter.

Chinese officials are also considering waiving tariffs on plane leases.

China’s potential exemptions mirror those seen with the US, which excluded electronics from its 145% tariffs on Chinese imports, amid concerns over sharply increasing costs.

While the US does import far more goods from China, than vice versa, Beijing’s exemptions highlight the reliance on US goods in some facets of its economy.

Still, discussions over exemptions were ongoing and may not proceed, Bloomberg said.

The US and China became embroiled in a bitter, tit-for-tat tariff exchange this month, as Trump levied steep duties on Beijing in an apparent attempt to reduce Washington’s massive trade deficit.

But China’s large trade surplus also stems from its export of goods that are crucial for several key US industries, leaving investors fearful of the economic impact on both sides.

Several US companies were seen racing to shift supply chains away from China. The Financial Times said on April 25 that Apple Inc. was seeking to source all its US-sold iPhones from India and away from China.