China eliminates 125% custom tariff on particular American products.
Fresh Take:
Get the Scoop: Beijing Axes Hefty Tariffs on select US Goods
In a twist of events, China's government has decided to wave retaliatory tariffs on some US imports, particularly those that it finds tough to replace or instantly source from other countries. The Wall Street Journal broke this news, citing a confidential source.
Here's the lowdown: Beijing has informed some US goods importers that they can dodge the recent 125-percent tariff hike on certain US products. These items include semiconductors, microchip-producing equipment, medical devices, and aircraft parts.
This move showcases China's exposed position in a multitude of sectors, notably advanced technologies, aviation, and pharmaceuticals, where US resources continue to be essential.
In a parallel scenario, earlier this month, the Trump administration exempted Chinese-made smartphones, laptops, and other electronics from "mutual tariffs," acknowledging the US's reliance on China for these supplies.
Remember, on April 2, Trump announced tariffs on $50 billion worth of Chinese goods, with rates ranging from 10 to 25 percent. Kazakhstan was one of the countries affected by these tariffs. In response, China imposed additional tariffs of 25 percent on US goods worth $34 billion.
However, this didn't go unchallenged. Trump issued an ultimatum to China, threatening to increase tariffs further if China didn't scrap its retaliatory tariffs. When China failed to comply, the US raised tariffs to 25 percent, while holding off on imposing tariffs for other countries for a while. Later, Trump escalated tariffs on Chinese goods to 30 percent.
China, unfazed, raised tariffs on US goods to 25 percent and declared it wouldn't play "tariff games" anymore. The BBC's Russian service hinted at China's determination not to back down in the face of Trump's threats, stating that China would "fight to the end" in the trade war.
Post this, Xi Jinping appealed to the European Union over US tariffs, and Trump initiated an investigation into these tariffs. Sources also reported that China halted Boeing aircraft purchases due to Trump's tariffs. American media later reported that Trump plans to negotiate with 70 countries to pressure China's trade partners and sever ties with it.
In a statement, China demanded that the US resolve issues through dialogue and negotiations, not threats. Stay updated with us for more exclusive news and insights!
Pro Tip:China has specifically exempted semiconductor imports and aviation parts from these retaliatory tariffs, indicating a strategic focus on maintaining stability in critical sectors.
Interesting Fact:Duties paid during the period the tariffs were in effect are eligible for refunds, which suggests that China is strategically targeting sectors where alternatives are limited or not readily available to mitigate potential disruptions to its industries.
- In a strategic move, China announced that it would waive retaliatory tariffs on select US imports, like microchips and aircraft parts, acknowledging the industry's reliance on American resources.
- President Xi Jinping appealed to the European Union over US tariffs, suggesting that China's finance and business sectors could be heavily impacted by the ongoing trade tensions.
- The Wall Street Journal reported that Beijing has exempted semiconductor imports and aviation parts from retaliatory tariffs, possibly to ensure stability in critical sectors like technology and aviation.
- The US initially announced tariffs on $50 billion worth of Chinese goods, with rates ranging from 10 to 25 percent, but later escalated them to 30 percent, leading to a potential billion-dollar impact on US-China business relations.
- The Trump administration exempted Chinese-made smartphones, laptops, and other electronics from "mutual tariffs," recognizing the US's reliance on China for these goods, and highlighting the broader interdependence between the two nations in the realm of technology and finance.
