NEW: China Subtly Yields to Trump, Grants Tariff Exemptions
As trade negotiations between the United States and China continue, Beijing has already begun making quiet concessions—moves that some see as a gesture of goodwill or perhaps an acknowledgment of mounting pressure from the Trump administration.
Recent reports indicate that China has discreetly excluded about a quarter of all American imports from its steep 125% tariffs. This translates to approximately $40 billion worth of U.S. products now entering China without the added tax burden.
The timing of this decision suggests an effort by Chinese officials to blunt the economic fallout from President Donald Trump’s newly imposed 145% blanket tariffs on Chinese exports.
Among the U.S. goods receiving exemptions are industrial chemicals and pharmaceuticals.
Experts speaking to Bloomberg believe Chinese President Xi Jinping’s policy change is more calculated than conciliatory. However, it remains unclear whether the shift stemmed from any direct outreach by the White House.
On Friday, a spokesperson for Xi signaled a potential opening for further talks, saying Chinese authorities are “evaluating” Trump’s most recent trade proposal—marking a notable shift in rhetoric that could lay the groundwork for extended negotiations aimed at reshaping the U.S.-China trade imbalance.
“The U.S. has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” Reuters reported.
Despite this, China’s Ministry of Commerce cautioned that it would not accept unfavorable terms, stating that “attempting to use talks as a pretext to engage in coercion and extortion would not work.”
Speaking to Fox News’ Maria Bartiromo on Thursday, U.S. Treasury Secretary Scott Bessent said he believes China is preparing to strike a deal after facing weeks of harsh tariffs that could lead to the loss of between five and ten million jobs in China.
“I am confident that the Chinese will want to reach a deal. And as I said, this is going to be a multi-step process. First, we need to de-escalate. And then over time, we will start focusing on a larger trade deal,” Bessent explained.
Roughly three weeks ago, Trump announced sweeping 145% tariffs on a broad range of Chinese imports. Beijing retaliated with its own 125% duties on U.S. goods.
Still, both sides have allowed exemptions for certain product categories. Notably, China recently lifted tariffs on ethanol, underlining the energy source’s significance to its domestic economy.
Xi’s recent diplomatic approach represents a marked departure from the aggressive rhetoric delivered by Chinese U.N. Ambassador Fu Cong at a United Nations Security Council session last month, titled “The Impact of Unilateralism and Bullying Practices on International Relations.”
“Under the guise of reciprocity and fairness, the U.S. is playing a zero-sum game, which is essentially about subverting the existing international economic and trade order by means of tariffs, putting U.S. interests above the common good of the international community and advancing hegemonic ambitions of the U.S. at the cost of the legitimate interest of all countries,” Fu stated in his opening remarks, according to Fox News.
Responding to that speech, a U.S. State Department spokesperson dismissed Fu’s comments as a “waste of time” and criticized the session as an example of China attempting to manipulate the “multilateral system to support its economic, political, and security interests.”
Meanwhile, President Trump’s approval rating has reached near-record highs, even amid backlash from Democrats, some establishment Republicans, and the mainstream press over his aggressive trade agenda.
A new poll from J.L. Partners and the Daily Mail, surveying 1,000 registered voters, found that Trump’s approval has climbed to 53 percent—up four points from 49 percent the previous week—despite the sweeping tariffs imposed on multiple trading partners starting April 2.