In a subtle yet significant shift, China has quietly removed its 125% retaliatory tariffs on certain U.S.-made semiconductors, signaling a potential easing in the ongoing trade tensions with the United States. This development was first observed by import agencies in Shenzhen, who noticed the absence of expected tariffs during routine customs clearances.
The exemptions specifically apply to eight categories of integrated circuits, excluding memory chips. These changes have not been officially announced by Chinese authorities, but importers discovered the tariff waivers only upon filing customs declarations.
This move comes in the wake of China’s decision on April 12 to impose a 125% tariff on all U.S. goods, a direct response to the U.S. increasing tariffs on Chinese imports to 145%. The quiet rollback suggests Beijing’s recognition of its dependence on certain U.S. technologies that are not readily available domestically or from alternative sources.
The exemptions have sparked optimism among businesses and investors, with Asian markets responding positively to the news. Analysts interpret this as a strategic move by China to mitigate the economic fallout from the trade war and to maintain stability in critical sectors reliant on advanced semiconductors.
While the Chinese government has not officially confirmed these exemptions, the actions indicate a potential softening of its stance in the trade dispute. Industry observers are closely monitoring the situation for further developments that could signal a broader de-escalation of trade tensions between the world’s two largest economies.
