Politics
NEW: China Quietly Caves To Trump, Exempts Tariffs
Tariff talks between U.S. and Chinese officials are underway, but already concessions by China are being made, either as a sign of good faith or a tacit acknowledgement that the Trump administration has the communist country over a barrel.
Approximately one-quarter of all U.S. imports to China have been quietly exempted from 125% tariffs, representing $40 billion in American-made goods that will now reach Chinese consumers without the sky-high surtax, according to the latest reports. The move comes as Beijing attempts to soften the blow to its own economy amid an across-the-board 145% tariff rate implemented on Chinese imports by President Donald Trump.
Some of the exempted items include pharmaceutical goods and industrial chemicals.
Trade experts told Bloomberg they see the policy change as a strategic one by Chinese President Xi Jinping to match Washington’s actions rather than conciliatory, though it’s unclear whether disarmament was made by the White House.
On Friday a spokesman for Xi said Chinese authorities are “evaluating” a current offer by the Trump administration, a critical shift in tone that could open the door to extended talks toward a historic renegotiation of the longstanding trade deficit between the U.S. and China.
“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.
However, the Chinese Ministry of Commerce warned that it would not be forced into making a bad deal, adding, “attempting to use talks as a pretext to engage in coercion and extortion would not work.”
On Thursday, U.S. Treasury Secretary Scott Bessent told Fox News’ Maria Bartiromo that he believes Beijing officials are ready to make a deal after weeks of punishing tariffs that may soon cost China’s economy between five and 10 million jobs.
“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 said.
President Trump slapped most Chinese goods with 145% tariffs about three weeks ago, a decision that led Beijing to reciprocate with 125% tariffs on U.S. imports. Both sides exempted a limited number of product categories: For example, China recently added an exemption for ethanol imports, underscoring its economy’s critical need for the fuel source.
The new tone set by Xi is extraordinarily stark with the aggressive nature of a speech given by Chinese U.N. Ambassador Fu Cong last month at a U.N. Security Council meeting 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,” Chinese U.N. Ambassador Fu Cong said in his opening remarks, Fox News reported.
A Statement Department spokesman responded to Fu’s speech, calling it a “waste of time” for ambassadors and slamming the meeting as an example of China’s manipulation of the “multilateral system to support its economic, political, and security interests.”