China waives tariffs on some US goods

Beijing seeks to mitigate economic fallout from trade war

- ANDREW SILVER TRIXIE YAP BRENDA GOH

China has granted some exemptions on US imports from its 125% tariffs and is asking businesses to identify goods that could be eligible in the clearest sign yet that Beijing is worried about the economic fallout from its trade war with Washington, according to businesses notified.

The dispensation is the latest sign that the world’s two largest economies were prepared to rein in their trade war, assuaging concerns about the impact of the tariffs.

Beijing’s possible consideration of wider tariff exemptions for dozens of industries follows a shift in tone from Washington, pushing the US dollar up slightly and lifting equity markets in Hong Kong and Japan.

A Ministry of Commerce task-force is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.

“The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the US that you cannot find anywhere else and so would shut down your supply chain,” American Chamber of Commerce in China President Michael Hart said yesterday.