China is weighing the possibility of lifting its 125% tariff on selected U.S. imports, including medical equipment and certain industrial chemicals like ethane, according to Bloomberg citing sources familiar with the matter.
This move comes as the economic repercussions of the ongoing trade war strain specific sectors. The discussions reportedly extend to potential tariff waivers for plane leases.
This consideration of tariff exemptions mirrors recent U.S. actions, where electronics were excluded from a 145% tariff on Chinese goods earlier this month. China, the global leader in plastics production, relies heavily on ethane imports from the U.S., while its healthcare sector depends on advanced American-made medical technology, such as those from GE Healthcare Technologies Inc.
No official comment has been provided by China’s Ministry of Finance or General Administration of Customs. The report stated that the exemption list remains in negotiation, and these deliberations may not reach completion.
Separately, Caijing has reported that Beijing is likely to annul additional tariffs on at least eight products related to semiconductors, although memory chips are currently excluded, potentially affecting Micron Technology Inc., the third-largest memory chip producer worldwide.
A note from experts stated that should ethane tariffs be lifted, it might temporarily stabilize the PE/PP spreads in Q2. Nonetheless, positive news on tariff exemptions could bolster the petrochemical sector overall.
