China Temporarily Removes Tariffs on U.S. Semiconductors Amid Trade War

China has reportedly exempted certain U.S. semiconductors from tariffs and is considering additional exclusions for specific industries as both countries navigate ongoing trade tensions. Taxes on eight categories of U.S. microchips have been reduced to zero, down from China’s previous retaliatory tariff rate of 125%. Chinese officials are also evaluating exemptions for medical equipment and industrial chemicals like ethane. The potential removal of tariffs on plane leases is under consideration as well. Despite public appearances of resistance to de-escalation, China’s actions suggest concern over potential layoffs and factory closures affecting its slowing economy. These exemptions mirror steps taken by the U.S., which excluded electronics from recent tariffs on Chinese goods. During heightened trade tensions in Trump’s first term, China implemented a system allowing companies to request sector-specific tariff exemptions to prevent major losses.
— new from New York Post

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