China mulls exempting some US goods from 125% tariff

China’s government is considering suspending its 125% tariff on some US imports, Bloomberg reported, citing sources familiar with the matter.

This potential exemption would include medical equipment and some chemicals, such as ethanol.

A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs, asking companies to submit their own requests, according to the sources.

China is also considering lifting tariffs on aircraft leasing, as domestic airlines do not own all of their aircraft and pay leasing fees to foreign companies for the use of their aircraft, and these tariffs significantly increase costs.

This reflects China’s growing concerns about the economic impact of high costs due to the trade war on certain industries, and, consequently, its negative effect on the economy.