China Considers Reducing 125% Tariff on Key US Imports Amid Trade Tensions

China is considering suspending its 125 percent tariff on select US imports, according to Bloomberg. The proposed exemptions reflect growing concern about the toll the prolonged trade war is having on critical Chinese industries.

Tariff cuts could target key sectors such as medical equipment and industrial chemicals like ethane, which is used in plastic production.China is also considering eliminating tariffs on aircraft leasing payments, which represent a significant cost for domestic airlines. If these tariffs remain in place, leasing planes may become prohibitively expensive.

China to eliminate tariffs on semiconductors

China is also reportedly planning to remove tariffs on at least eight semiconductor products, though memory chips manufactured by US company Micron Technology may be excluded.

The Chinese government has asked businesses to submit a list of US products that they want to see exempt from tariffs, but no official list has been confirmed.

The US exempts certain electronics from tariffs

Last week, the Trump administration announced exemptions for electronics, including smartphones, laptops, memory chips, and display panels, from its 145% tariff on Chinese imports.

China's potential tariff reductions highlight the country's reliance on US goods in a number of key sectors. Chinese hospitals rely on advanced medical devices made in the United States, such as MRI and ultrasound machines manufactured by GE Healthcare. Some chemical and chip manufacturers rely on US supplies to keep their operations running smoothly.

Are US-China trade tensions easing?

While these potential tariff reductions suggest some relief for tensions, China has made it clear that it wants the US to remove all unilateral tariffs before any future negotiations can begin.

President Trump has largely changed his stance on China, claiming that his administration is in talks with Beijing 'every day'. However, on Thursday, a spokesperson for the Chinese Foreign Ministry denied talks with the United States. While both have stated that they are open to dialogue, little has been reported on the subject, and trade talks have stalled.