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Home » China Calls US Tariff Exemptions A “Small Step” Toward Fixing “Wrong Practice”

China Calls US Tariff Exemptions A “Small Step” Toward Fixing “Wrong Practice”

Adam Green By Adam Green April 13, 2025 5 Min Read
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China Calls US Tariff Exemptions A “Small Step” Toward Fixing “Wrong Practice”

Update (Sunday): 

China responded to new trade guidance issued by U.S. Customs and Border Protection on Friday evening. The guidance excludes some of the highest-value goods—such as computers, chips, and smartphones—from reciprocal tariffs.

AFP News quoted a Chinese Commerce Ministry spokesperson, calling the updated guidance a “small step” toward correcting President Trump’s “wrong practice” of imposing 145% tariffs on Chinese goods. Beijing has hit back with 125% levies on U.S. goods in the deepening trade war that erupted last week.

“China is now evaluating the impact,” the ministry spokesperson said.

*  *  *

Update (1255 ET): As Trump adviser Stephen Miller points out, the products are still “subject to the tariff under the original IEEPA on China of 20 percent.”

The White House further clarified that the exemption (from the higher tariffs only) will be retroactive to April 5th, and all duties received since then will be refunded.

Any duties that were collected at or after 12:01 a.m. eastern daylight time on April 5, 2025, pursuant to Executive Order 14257 and the Subsequent Orders, on imports that are excepted under Executive Order 14257 and the Subsequent Orders because they are “semiconductors,” as explained in this memorandum, shall be refunded in accordance with U.S. Customs and Border Protection’s standard procedures for such refunds.

*  *  *

U.S. Customs and Border Protection (CBP) issued an updated guidance late Friday night on product exclusions from President Trump’s reciprocal tariffs, imposed under Executive Order 14257 and its amendments (EO 14259). The exclusions cover a wide range of electronic devices, including smartphones, laptops, and related components.

First, President Trump paused reciprocal tariffs for non-retaliating countries (e.g., China) for 90 days last week. Now, updated guidance from CBP reveals that some of the highest-value trade—particularly a wide range of electronics—is excluded from the reciprocal tariffs.

Among the 20 tariff codes listed for exemption, three stand out in particular:

  • 8471 – Automatic data processing machines and units thereof (e.g., laptops, desktops, servers).
  • 8517.13.00 – Smartphones and other telecommunication apparatus for cellular networks.
  • 8542 – Electronic integrated circuits (e.g., microprocessors, memory chips).

Here’s the complete list:

  • 8471 – Automatic data processing machines and units thereof (e.g., laptops, desktops, servers).
  • 8473.30 – Parts and accessories for automatic data processing machines (e.g., computer parts).
  • 8486 – Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits.
  • 8517.13.00 – Smartphones and other telecommunication apparatus for cellular networks.
  • 8517.62.00 – Machines for the reception, conversion, and transmission/regeneration of voice, images, or other data (e.g., modems, routers).
  • 8523.51.00 – Solid-state non-volatile storage devices (e.g., flash memory, SSDs).
  • 8524 – Media for the recording of sound or other phenomena, not elsewhere specified (can include CDs, DVDs, etc.).
  • 8528.52.00 – Monitors capable of directly connecting to an automatic data processing machine (e.g., computer monitors).
  • 8541.10.00 – Diodes, other than photosensitive or light-emitting diodes (LEDs).
  • 8541.21.00 – Transistors with a dissipation rate of <1 W.
  • 8541.29.00 – Other transistors.
  • 8541.30.00 – Thyristors, diacs, and triacs (semiconductor switching devices).
  • 8541.49.10 – Light-emitting diodes (LEDs) – chips mounted in discrete packages.
  • 8541.49.70 – Other LEDs, not listed elsewhere.
  • 8541.49.80 – Infrared LEDs.
  • 8541.49.95 – Other light-emitting semiconductor devices.
  • 8541.51.00 – Silicon-based photovoltaic devices (solar cells), whether or not assembled in modules or panels.
  • 8541.59.00 – Other photovoltaic devices.
  • 8541.90.00 – Parts of the goods of heading 8541 (e.g., parts for diodes, transistors, LEDs).
  • 8542 – Electronic integrated circuits (e.g., microprocessors, memory chips).

To close out the week, the U.S.–China trade war escalated in a highly predictable tit-for-tat fashion. The U.S. now imposes a 145% effective tariff rate on Chinese goods, while Beijing has retaliated with a 125% rate on American products.

Meanwhile, Wall Street analysts have already trimmed sales estimates for U.S. companies with Chinese exposure, including Apple and Tesla, as economic storm clouds gather over global trade.

Notably, most of the products now exempt from reciprocal tariffs are those the U.S. lacks the capacity to produce at scale—highlighting the need for significant reshoring, investment, and supply chain restructuring.

Many of these products are also consumer essentials—items Americans couldn’t live without, such as smartphones and computers—making them politically sensitive. The Trump administration likely chose not to risk upsetting consumers ahead of the Midterms.

In markets, this news will be fuel to stage a further recovery…

Nasdaq Breadth…

As Wedbush’s Dan Ives notes, Big Tech and investors ‘got the dream news’.  .  .

 

Read the full article here

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