China considers 125% tariff rollback on select US imports amid economic pressure

According to a source cited by Bloomberg, the Ministry of Commerce has set up a task force to consult businesses and identify US goods that may be exempted from the current 125% retaliatory tariffs.

Financial publication Caijing reported that eight semiconductor-related items—excluding memory chips—are under consideration.

Meanwhile, a list of 131 product categories, including vaccines, chemicals, and jet engines, is circulating in business circles and on Chinese social media, fuelling speculation. Reuters noted it has not independently verified this list.

Economic concerns may be reshaping Beijing's stance

According to media reports, the deliberations come amid mounting signs of economic distress.

Weak demand, persistent deflation, and lagging consumer confidence have plagued China’s post-pandemic recovery, prompting exporters to shift focus to domestic markets—an effort many say is yet to yield stability or adequate margins.

The possible exemptions would follow a similar move by Washington, which recently granted limited tariff relief on certain electronics.

The twin steps hint at a rare pause in a conflict marked by fierce disputes over market access, IP rights, and industrial policy.

A subtle shift without a full retreat

Though Beijing has previously vowed to “fight to the end” unless US tariffs were rolled back, the current review suggests a more pragmatic turn.

By selectively easing duties, China could reduce economic strain and create space for dialogue, without surrendering key leverage in trade negotiations.

For US exporters, especially those in tech and biotech, the exemptions may offer a modest reprieve.

For China, the move could help shore up struggling industries and send a message of stability to markets at home and abroad.