U.S. imports granted select tariff immunity by China amid escalating trade conflict
In a Potential Breakthrough Amid Trade Tensions, China is reportedly contemplating easing tensions with the US by considering the elimination or reduction of certain tariffs on American imports. According to the American Chamber of Commerce in China, China's Ministry of Commerce is conducting a review of sectors affected by Beijing's heavy tariffs on US goods.
Michael Hart, president of the American Chamber of Commerce in China, revealed on Friday that healthcare imports to China are under review for possible tariff exemptions. Companies in sectors such as aviation, industrial chemicals, and even specific semiconductors have already been granted a reprieve, while some reports indicate that some semiconductors have been exempted altogether.
French aerospace engine maker Safran also chimed in, confirming that China has granted some tariff exemptions on engine, nacelles, landing gear, and parts imports.
Hart pointed out industries that could potentially be impacted, given their high levels of imports, such as pharmaceuticals and medical devices. If the tariffs remain in place at their current levels, he warned, it could lead to the closure of some companies.
China, however, has yet to comment officially on these tariff exemptions. China's foreign ministry has stated it is unaware of any exemptions and reaffirmed that there have been no direct talks with the US to reduce levies.
US President Donald Trump has previously excluded high-value Chinese goods such as smartphones and electronics from his tariffs of up to 145 per cent, but these exemptions were only temporary. The ongoing trade war between the two nations has hit American agricultural goods and energy sectors particularly hard.
Negotiations between the two nations have been a contentious issue, with Trump insisting that talks are underway, despite Chinese denials. China, on the other hand, has urged the US to "cancel all unilateral tariff measures" if it wants to initiate trade talks.
As the trade war looms, economists have warned that some sectors could see a halt in bilateral trade due to the current level of tariffs making US imports unviable for many Chinese businesses. Chinese President Xi Jinping has called for emergency plans to boost the economy, increasing support to businesses, accelerating consumption efforts, and resolving the long-standing downturn in the property sector.
- The American Chamber of Commerce in China, Michael Hart specifically, revealed an ongoing review of healthcare imports for potential tariff exemptions by China, indicating a possible breakthrough in the trade tensions.
- In the review, some sectors including aviation, industrial chemicals, and specific semiconductors have already been granted tariff reductions or exemptions, as confirmed by French aerospace engine maker Safran.
- Hart pointed out potentially impacted industries, such as pharmaceuticals and medical devices, warning that high tariffs could lead to closures of some companies in these sectors.
- Economists have warned that ongoing trade war between the US and China could cause some sectors to experience a halt in bilateral trade due to the high tariffs making US imports unviable, while Chinese President Xi Jinping has called for emergency plans to boost the economy amid this trade conflict.
