China Implements Secret Tariff Exemptions Amid Trade Tensions

China has quietly begun exempting select U.S. goods, particularly in pharmaceuticals, technology, and aviation, from its 125% tariffs, signaling a desire to ease trade tensions without making public concessions. These exemptions, communicated discreetly to companies, aim to prevent critical supply shortages in sectors where China relies on U.S. imports, such as semiconductors and certain aircraft components. While the official stance denies any exemptions, U.S. and multinational firms report being consulted about essential goods and specific tariff codes, with some companies already benefiting from waivers. Experts note this move helps Chinese customs clear backlogged shipments and maintain economic stability, even as broader negotiations with the U.S. continue. Both sides appear to be exploring phased tariff reductions and renewed trade talks, though public rhetoric remains tough. Overall, these behind-the-scenes actions suggest both nations are seeking ways to de-escalate the trade conflict while protecting their own interests.