On Wednesday, Reuters reported that China had quietly compiled a list of US-made goods exempt from its 125% tariffs, aiming to ease trade tensions without public concessions.
The list appears to be expanding: For instance, China recently waived tariffs on US ethane imports. This approach allows Beijing to maintain a firm public stance while offering behind-the-scenes relief. Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals.
Meanwhile, President Trump defended the 145% tariffs on Chinese imports, saying China "deserves it" and would likely "eat" the costs to shield US consumers. He did acknowledge Wednesday, however, the possibility of supply shortages and higher prices for consumers.
"Somebody said, oh, the shelves are going to be open," Trump said in a Cabinet meeting. "Well, maybe the children will have two dolls instead of 30 dolls, you know. And maybe the two dolls will cost a couple bucks more than they would normally."
His comments contrast with quieter moves inside the administration to consider phased tariff reductions and revive trade talks with Beijing — though no formal negotiations have begun.
But with 145% tariffs on China now in place for several weeks, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg. Experts are warning of coming supply shortages and layoffs in sectors like trucking, logistics, and retail.
Meanwhile, some tariff relief is on the way for automakers after Trump signed an order offering exemptions to certain car and parts tariffs.
The order clarifies that companies already paying tariffs on imported vehicles won't be charged other levies, such as on steel. The US also eased duties on foreign parts. The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers.
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