In a positive step for US-China trade relations, the Trump administration announced Friday. They did something most people probably didn’t expect — they announced an exemption for certain technological goods from tariffs placed on Chinese imports. Comments from Beijing officials have been varied in their response to this decision. They are calling it an encouraging sign—a sign of a tiny concession in the escalation of ever-worsening trade tensions.
Scope of the Exemptions
The exemptions cover a wide swath of technological goods, most prominently smartphones, computers, and semiconductors. Most of which are made in China. Additionally, President Trump announced that more information on these exemptions would be forthcoming early next week. So it is odd that the administration recently slapped steep tariffs on imported Chinese goods. They were at 54% in early April and then shot up to an all-time high of 145%.
China’s commerce ministry called the US exemptions a “small step.” They are now figuring out what this decision will mean for their nascent economy. The ministry urged the US to “completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect.”
The trade representative for the US, Jamieson Greer, was questioned about any forthcoming discussions between President Trump and Chinese President Xi Jinping regarding these issues. Greer responded, “Right now we don’t have any plans on that,” indicating that there are no immediate prospects for dialogue between the two leaders.
Experts Doubt Positive Change
Nonetheless, experts continue to doubt any real move from the new administration in changing this protectionist course taken by both countries. Even with the exemptions, nothing is working. Hope is running out. The US administration is being roundly criticized for its overly aggressive tariff policies. Observers see two bases for concern, especially that these actions are leading China to retaliate.
Technology is among the industries hardest hit by the US tariffs, which have had a major impact across all sectors. The decision to provide exemptions suggests a recognition of these impacts and an effort to alleviate some pressure on American consumers and businesses reliant on imports. It’s not yet clear just how constructive these concessions will be in promoting a more positive, progressive trade relationship.
What The Author Thinks
While the recent tariff exemptions offer some relief to industries like technology, it remains unclear whether they will lead to meaningful, long-term improvements in US-China trade relations. The current approach continues to be highly volatile, and with both sides still entrenched in their respective positions, real progress seems uncertain.
