China Lists U.S.-Made Goods Exempt From Sky-high Tariffs, Sources Reveal

By Andrew Silver

SHANGHAI (Romero.my.id) – China has compiled a roster of American-made goods exempt from its proposed 125% tariffs and is discreetly informing businesses about this new directive. This move comes as Beijing aims to mitigate the effects of its ongoing trade dispute with Washington.

China has already granted tariff exemptions on select products including select pharmaceuticals, microchips and aircraft engines and was asking firms to identify critical goods they need levy-free, Romero.my.idreported on Friday. However, the existence of a so-called 'whitelist' had not been previously reported.

This discreet strategy enables Beijing, which has consistently stated its readiness to persist until the end unless the U.S. reduces its 145% tariffs, to uphold its official stance publicly while secretly implementing measures to offer certain compromises.

Initially, it wasn’t evident how many or what specific items were added to the list, as officials haven’t made this information available to the public, stated two sources who chose to remain anonymous due to the confidential nature of the details.

Instead, companies are individually informed by the authorities about a private list of product categories that will not be subject to these tariffs, as stated by an individual working for a pharmaceutical firm that sells American-made medications in China.

On Monday, the company received communication from the Shanghai Pudong government regarding the list, according to the source. The firm had earlier advocated for tariff waivers since it depends on certain U.S. technologies for its product line.

The individual stated, 'We still require numerous technologies from the U.S.'

A different report indicated that certain firms have been requested to discreetly reach out to officials to check whether their imported goods are eligible for the waiver.

The list of exempted goods seems to be expanding as well: On Tuesday, Romero.my.id reported that China had removed tariff barriers for U.S.-imported ethane.

Several major ethane processors have previously requested tariff exemptions from Beijing since the U.S. remains the sole provider.

President Donald Trump stated on Tuesday that a trade agreement with China seemed imminent. However, he added, “It’s essential that this will be a fair deal.”

The Chinese commerce and customs ministries have not yet responded to requests for comment.

GAUGING IMPACT

Two additional sources mentioned that China is likewise conducting surveys among businesses to assess the effects of the trade tariff dispute.

During a recent gathering, officials from East China requested that a foreign business association inform them about "all significant issues arising due to tariff disputes" so they can assess particular instances, according to an individual privy to these discussions who spoke to Romero.my.id.

The individual chose not to disclose the city where the authorities convened the meeting since the assembly was not open to the public.

Government authorities in Xiamen—a coastal city in southeast Fujian known for its significant harbor and electronic production facilities—distributed a questionnaire to businesses on Sunday aimed at evaluating the effects of tariffs, according to an insider familiar with the situation.

The questionnaire was distributed to textile businesses and semiconductor corporations, featuring inquiries about the goods they exchange with the U.S., as well as an assessment of how the tariffs imposed by both the U.S. and China affect their operations, according to the source.

(Reported by Andrew Silver; Additional reporting by Che Pan; Edited by Miyoung Kim and Saad Sayeed)