In the high-stakes trade war between the United States and China, a quiet yet telling shift is taking place behind the scenes—and it’s coming from Beijing.
According to a Bloomberg report, China is now selectively exempting a significant number of U.S. goods from its once-fierce retaliatory tariff regime. A list quietly circulating among business insiders includes 131 U.S. products—from pharmaceuticals to industrial chemicals—that are making their way into China tariff-free.
While unconfirmed officially, the list allegedly covers nearly 24% of all American imports to China, representing an estimated $40 billion in trade. That’s not a policy footnote. That’s a major pressure valve.
So what’s going on here? On the surface, it may appear like a minor technical adjustment—but dig deeper, and it’s clear: the Chinese economy is feeling the heat. Treasury Secretary Scott Bessent pulled no punches when he told Fox Business that China is facing “very poor GDP numbers,” along with an estimated loss of 5 to 10 million jobs.
He added that the economic model in China is “the most unbalanced, imbalanced economy in the history of the world.” That’s not just rhetoric—it’s a reflection of growing vulnerability in the world’s second-largest economy.
And here’s where it gets strategic. Just as President Trump made calculated exemptions—like excluding smartphones from certain tariffs—Beijing is now playing a similar game.
Behind its public statements of defiance, such as calling the U.S. pressure campaign “blackmail,” China is making tactical moves to stabilize its supply chains, avoid drug shortages, and cushion industrial sectors that can’t afford disruption. It’s not capitulation—but it’s certainly not the chest-thumping nationalism we’ve been hearing at the podium either.
Meanwhile, both sides continue to engage in a diplomatic dance. Trump has said that China has “reached out a number of times” to rekindle trade negotiations.
In contrast, the Chinese Commerce Ministry claims it was the U.S. making overtures, saying Beijing is “evaluating” potential talks and insisting that Washington must show “sincerity”—code for rolling back the tariffs.