China Softens 125% Tariff Stance Amid Trade Tensions with U.S.

In a notable shift amid escalating trade tensions, China has begun selectively easing its 125% retaliatory tariffs on certain U.S. imports, signaling a potential openness to renewed negotiations with Washington.

According to sources familiar with the matter, Beijing has compiled a confidential list of American-made goods exempted from the steep tariffs. This list includes critical items such as pharmaceuticals, microchips, aircraft engines, and ethane—a key input for China’s petrochemical industry. While these exemptions have not been publicly announced, Chinese authorities have discreetly informed relevant companies and are soliciting feedback to identify additional essential imports that may qualify for relief.

The move comes in response to the U.S. administration’s recent escalation of tariffs on Chinese goods to 145%, a policy aimed at addressing trade imbalances and intellectual property concerns. In retaliation, China imposed its own 125% tariffs on U.S. products. However, the economic strain from the ongoing trade war has prompted Beijing to reconsider its approach. Recent data indicates a significant decline in China’s manufacturing output and export orders, raising concerns about potential job losses and economic slowdown.

Amid these developments, Chinese state-affiliated media have hinted at a willingness to engage in dialogue with the U.S. A social media post by Yuyuan Tantian, linked to state broadcaster CCTV, stated that while China does not need to initiate talks, it sees “no harm” in engaging if approached. This sentiment suggests a subtle shift in Beijing’s stance, balancing domestic economic pressures with the desire to maintain a firm negotiating position.

U.S. officials have reportedly reached out to their Chinese counterparts through multiple channels, expressing interest in resuming trade discussions. While formal negotiations have yet to commence, both sides appear to be exploring avenues to de-escalate tensions and address mutual concerns.

As the global economy grapples with the repercussions of the U.S.-China trade dispute, stakeholders worldwide are closely monitoring these developments for signs of a potential resolution.