List of American "white goods" set for duty exclusion revealed by Reuters

List of American "white goods" set for duty exclusion revealed by Reuters

Turns out, the cat's outta the bag - China has taken a u-turn on some U.S. products, skirting around tariffs for items like pharmaceuticals, microchips, and aircraft engines. But don't go looking for a formal announcement from the Chinese authorities, as they've kept their cards close to their chest on this one. We got the scoop from Reuters, who spilled the beans on a previously unreported "white list" that outlines the specific goods and quantities that qualify for exemption. But alas, what items exactly? Well, that's crimson as a rose, mate.

Sources in the know have spilled the beans to Reuters. One such source, who hails from a pharmaceutical company selling U.S.-made drugs in China, claims China's officials have been stealthily sliding into companies' DMs to inform 'em of the tariff exemption deal. Another insider shed some light, revealing that certain companies have received a message from the authorities encouraging them to tap on their phones and shoot them a message to see if their imported products are on the exemption list.

The Chinese Ministry of Commerce and Customs, ever the tight-lipped ones, have yet to respond to Reuters' request for a comment, leaving us hanging like a washing line in a gale.

On April 22, the U.S. president dropped a bombshell. Washington is contemplating the possibility of sealing a trade deal with China, which currently faces a steep 145% tariff. The Wall Street Journal, citing a source, whispered in whispers that tariffs on Chinese goods could plummet to around 50-65%. Some whispers in the wind suggest that the U.S. could slash tariffs on Chinese imports to a cool 35% for goods that ain't deemed a threat to U.S. national security, and an eye-popping 100% for goods that are strategically important to U.S. interests. In response to U.S. tariffs, China hit back with a tariff of 125%. On April 29, Donald Trump blew a raspberry at the tariff war, claiming a trade deal with China ain't far off. But, he swore, it would be a fair deal.

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Tags: #Tariffs #USA #China #Business

What's Going Down:

As of April 2025, China has been selectively waiving tariffs on certain U.S. goods, giving birth to a "white list" system for eligible products. While no formal U.S.-China bilateral agreement has been announced, available information suggests:

• The ethane tariff exemption: China granted a tariff holiday for U.S. ethane imports on April 29, affecting major Chinese chemical firms like Sinopec and Wanhua Chemical Group.
• Ever-expanding exemptions: Prior to the ethane waiver, China offered exemptions for pharmaceuticals, microchips, and aircraft engines, while actively seeking input from companies about additional goods requiring relief.
• The white list mechanism: Reuters and The Business Standard reported that China is compiling a list of U.S.-made goods that are exempt from tariffs, with exemptions seemingly granted on a case-by-case basis for strategically important goods.

U.S. Tariff Strategy:

• Tariff tit-for-tat: In response to China’s initial 34% tariff, the U.S. ratcheted up duties on Chinese goods from 34% to 84% effective April 9, 2025.
• Small imports: A hefty 90% tariff (or $75-$150 per item) will be collected on small parcels from China via postal networks starting May 2, 2025.

Here's the Scoop:

The white list appears to be a Chinese initiative rather than a negotiated agreement. U.S. companies are indirectly benefiting through exemptions that target sectors crucial to China’s supply chains. No official joint declaration or standardized exemption process has been announced by either government.

1. Reuters revealed a "white list" system, where China selectively waives tariffs on certain U.S. goods, such as pharmaceutical products and aircraft engines.
2. Sources claimed that China's officials have been privately communicating with companies about their eligibility for tariff exemptions on U.S.-made goods.
3. In response to China's initial tariffs, the U.S. imposed higher duties on Chinese goods, with postal imports facing a 90% tariff starting May 2, 2025.
4. Exemptions from tariffs in China seem to be granted on a case-by-case basis for strategically important goods.
5. The Chinese Ministry of Commerce and Customs has not responded to Reuters' request for comment, indicating a lack of transparency in the tariff exemption process.

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