China is reportedly considering suspending its 125% tariff on certain U.S. imports, according to a Bloomberg report.
This move is driven by concerns about the negative impact the prolonged trade war is having on vital Chinese industries.
The proposed tariff reductions would target critical sectors, including medical equipment and industrial chemicals like ethane, used in plastic production.
China is also contemplating removing tariffs on aircraft leasing payments, which are a major expense for domestic airlines.
If the tariffs remain, leasing planes could become prohibitively expensive for them.
China is also considering removing tariffs on at least eight semiconductor products, though memory chips from U.S. company Micron Technology may not be included.
The government has asked businesses to submit a list of U.S. products they want exempted from tariffs, but no official list has been confirmed yet.
Last week, the Trump administration revealed exemptions for electronics such as smartphones, laptops, memory chips, and display panels from its 145% tariff on Chinese imports.
The potential tariff reductions in China underscore the country’s reliance on U.S. goods in key sectors.
Chinese hospitals, for example, depend on advanced U.S.-made medical devices, such as MRI and ultrasound machines, from companies like GE Healthcare.
