Sources: China has quietly exempted from tariffs at least eight classifications of US-made microchips, as it seeks to exempt “irreplaceable” goods
duties paid are eligible for refunds Wency Chen / South China Morning Post : China said to waive retaliatory tariffs on some US chip imports in sign of trade war thaw Meaghan Tobin / New York Times : China Is Weighing Tariff Exemptions on Some U.S. Imports Qianer Liu / The Information : China Quietly Drops 125% Retaliatory Tariff on Crucial U.S. Semiconductors Diya Lal / Tech in Asia : China reportedly lifts tariffs on US semiconductors Siladitya Ray / Forbes : China Reportedly Wants To Exempt Some U.S. Items From 125% Tariffs X: Varad Mehta / @varadmehta : The idea that China is somehow immune to Trump's tariffs and only the US will be hurt is balderdash. China has weaknesses and vulnerabilities, too, as this article makes clear. That said, both sides need to knock it off as both can and will be hurt the longer this goes on. Ray Wang / @rwang07 : ...So how might the new “chip exemption” impact the industry? First, it would benefit Chinese firms that import U.S.-made chips or final goods containing U.S. semiconductors. This is especially relevant in light of the new “IC origin” rules announced by China's Semiconductor Industry Association two weeks ago... Gordon G. Chang / @gordongchang : China, without making announcements, is not applying tariffs on some aviation products, industrial chemicals, and semiconductors. Beijing is learning that an export-dependent economy cannot afford imposing tariffs on items needed to make its finished products. Noah Smith / @noahpinion : China's leaders are significantly less stupid than Trump, but they're not the brightest either Ray Wang / @rwang07 : BIG: China Halts 125% Tariffs on Semiconductor from the United States （1/2） According to the customs declaration system “Single Window” (單一.口）on April 24, 2025, the declared tax calculation shows that customs will cease the additional 125% tariff on integrated circuits [image] Steve Inskeep / @nprinskeep : Weeks ago, the US excluded computers, phones, and other goods from the high tariffs on Chinese goods. Now a Chinese news outlet, and the Washington Post, say China as exempted some US-made semiconductors from their retaliatory tariffs. [image] Varad Mehta / @varadmehta : I'm so old I can remember when China was insisting Trump had to roll back his tariffs first. You know, twelve hours ago. @hassankhan : although semiconductors are the focal industry in the current geopolitical battle both sides keep exempting them from tariffs because critical industries on either side can't easily substitute the goods Marika Katanuma / @marikakatanuma : new: China is considering suspending its 125% tariff on US imports for some goods as the trade war drives up costs. It mirrors similar moves on the part of the US, which excluded electronics from its 145% tariff on Chinese imports earlier this month. https://www.bloomberg.com/... David Kudla / @david_kudla : De-escalation of the horrendous tariffs on both sides is a very good development and a good start. At the proposed levels, both economies would be devastated. https://www.bloomberg.com/... Forums: r/politics : China quietly exempts some U.S.-made semiconductors from tariffs r/finance : China quietly exempts some U.S.-made semiconductors from tariffs
Context & Ripple Effects
The reported carve-outs extend a pattern visible earlier in April: China had already exempted chips made by Taiwanese manufacturers for major U.S. designers, then formally excluded advanced chips from its retaliatory duties. The common constraint is preserving access to inputs that cannot be readily substituted without disrupting supply.
The policy sits alongside China’s longer-running effort to build a domestic semiconductor base, including tax incentives for chip companies, but the exemptions show that supply continuity remains the immediate priority where domestic alternatives fall short.
First-order effects
- Chinese importers of the covered U.S.-made chip categories can avoid the retaliatory duty and seek refunds on duties already paid, reducing their near-term procurement cost and supply risk.
- U.S. chip suppliers whose products fall within the classifications retain a more viable route to Chinese customers despite the wider tariff dispute.
Second-order effects
- The selective relief gives Chinese device makers and other chip buyers an incentive to keep qualifying U.S. components in their supply chains rather than accelerate substitution solely to avoid tariffs.
- It also makes tariff exposure more dependent on chip origin and classification, reinforcing the advantage of manufacturing and sourcing arrangements that can meet China’s exemptions.
Third-order effects
- If repeated, such targeted exemptions would make semiconductor tariffs a tool for protecting negotiating leverage while shielding critical production inputs, rather than a blanket barrier to trade.
- The episode underscores the structural tension between China’s domestic-chip push and its continuing reliance on certain foreign technologies; that dependence may persist until alternative capacity is credible at the required specifications.
The trend: Semiconductor trade policy is becoming more selective, with governments attempting to apply pressure while limiting damage to strategically necessary supply chains.