China Creates Tariff Exemption List to Ease US Trade Tensions

In a strategic move to reduce the fallout from its escalating trade war with the United States, China has compiled a confidential list of American-made products that will be exempt from its steep 125% retaliatory tariffs, according to sources familiar with the matter.
Two individuals with knowledge of the policy told Reuters that Chinese authorities are discreetly informing domestic companies about the exemptions. The list itself, often referred to as a “whitelist,” has not been publicly disclosed.
Silent Flexibility Amid Tough Rhetoric
While Beijing continues to deliver a tough public stance—insisting it will not back down unless Washington lifts its 145% tariffs—the creation of a quiet exemption pathway allows Chinese officials to offer relief to domestic industries without altering their official messaging.
Select exemptions have already been confirmed for critical imports, including pharmaceuticals, microchips, and aircraft engines. Officials are also inviting companies to identify other essential goods that may qualify for tariff-free access.
Unknown Scope, Strategic Intent
The number and nature of the products on the whitelist remain undisclosed, and the government has not made any formal announcement about the policy. Analysts suggest the maneuver reflects China’s effort to shield key industries from economic strain while avoiding the appearance of backing down in the broader geopolitical confrontation.