China Considers US Tariff Exemptions as Trade War Backfires

After years of tough talk and tit-for-tat tariffs, China may finally be blinking in the face of President Trump’s economic pressure campaign. According to new reports, Beijing is considering exemptions on some U.S. imports from its punitive 125% tariffs an early sign that China’s economic armor is cracking under the weight of its own aggressive trade war strategy.

Per Reuters, China’s Ministry of Commerce is collecting lists of products to potentially exempt from tariffs, even asking businesses to submit their own requests. An internal list circulating among trade groups reportedly includes over 130 product categories from vaccines and jet engines to chemicals and semiconductors.

In total, Huatai Securities estimates the list corresponds to $45 billion in U.S. imports last year, a major chunk of trade that could be quietly re-opened if Beijing chooses to pull back.

This isn’t charity it’s desperation.

China’s economy is floundering:

• Consumer demand remains weak, with spending levels still stuck in post-COVID malaise.

• Chinese manufacturers report shrinking profits as tariff-hit goods lose competitiveness abroad and flounder at home.

• Beijing’s push for exporters to pivot to local markets has fallen flat, with business owners citing unreliable domestic customers and declining revenue.

The truth is simple: Trump’s America First economic policies worked. By slapping hard tariffs on Chinese goods and refusing to budge until there was fair trade, Trump forced Beijing to face the consequences of its predatory practices.

While Biden’s team has waffled and worried about “global cooperation,” Trump stayed the course and now China is weighing concessions.

Even China’s state-friendly publication Caijing confirmed the shift, reporting that eight semiconductor-related items are being reviewed for exemption. Memory chips, however, remain protected evidence that China’s retreat is cautious but real.

And this matters far beyond a spreadsheet. If Beijing starts to peel back tariffs, it sends a signal to other global players that Trump’s hard-nosed economic strategy works. That’s leverage America can’t afford to waste especially as we face ongoing threats from Chinese espionage, IP theft, and manipulation of global markets.

Let’s also be clear: this is not a sign of goodwill from China. Exemptions would relieve pressure on the Biden White House, soften inflationary impact on U.S. goods, and ease diplomatic tensions without Beijing having to make broader structural reforms. It’s a carefully calculated play to preserve their image while quietly admitting defeat in key sectors.

But the American people should see it for what it is proof that we were right to get tough on China.

President Trump’s trade war wasn’t about posturing it was about restoring balance to a global system that had been rigged in China’s favor for decades. And if China’s now retreating under pressure, it’s because they’ve been forced to.

This is the model. This is how you win.

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