Media: China consider exempting some US goods from the 125% retaliatory tariffs

China is reportedly considering suspending the newly imposed 125% tariffs on a selection of US imports, as concerns mount that the escalating tit-for-tat trade war could significantly disrupt some domestic industries.

According to market sources, a circulated list outlines 131 line items under review for potential exemption, spanning from medical equipment to critical raw materials such as ethane. However, CommoPlast has not independently verified the authenticity of the document.

Among the goods related to the petrochemical sector reportedly under consideration are:

As previously reported, China imported 5.5 million tons of ethane in 2023, all sourced from the United States, according to the latest data from the Customs Department. With the 125% tariff in effect, Chinese ethane cracking operators face the imminent risk of production disruptions or shutdowns.

Authorities have reportedly asked companies operating in vulnerable sectors to submit the customs codes for US-sourced goods they require to be exempt from the punitive tariffs. Nonetheless, the exemption list remains fluid, and there is no guarantee that deliberations will lead to concrete action.

China’s potential exemptions would mirror recent moves by the United States, which earlier this month announced the exclusion of electronics from its newly imposed 145% tariff on Chinese imports. Should Beijing proceed, it would represent a tentative step towards easing trade tensions between the world’s two largest economies.