China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses that have been notified, in the clearest sign yet of Beijing’s concerns about the trade war’s fallout.
The dispensation, which follows de-escalatory statements from Washington, signals that the world’s two largest economies were prepared to rein in their conflict, which had frozen much of the trade between them, raising fears of a global recession.
Beijing’s exemptions – which business groups hope would extend to dozens of industries – pushed the U.S. dollar up slightly and lifted equity markets in Hong Kong and Japan.
“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions,” said Alfredo Montufar-Helu, a senior adviser to the Conference Board’s China Center, a think tank.
But he cautioned: “It’s clear that neither the U.S. nor China want to be the first in reaching out for a deal.”
China has not yet communicated publicly on any exemptions.
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Author: Faith Novak
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