China has reportedly eased its punitive tariffs on certain US-made semiconductors, which had been set at a staggering 125%. This information comes from three import agencies in Shenzhen and was shared with CNN on Friday. The exemptions specifically pertain to integrated circuits, commonly referred to as microchips or semiconductors. The agencies discovered these exemptions late on Thursday, although no official announcement has been made by the Chinese authorities.
In April, China had raised its tariffs to 125% on all goods from the United States in reaction to US President Donald Trump’s decision to increase tariffs on Chinese imports to 145%. For some time, Beijing had maintained a strong front, asserting its ability to endure the escalating trade tensions with the US. However, the latest exemptions indicate a recognition of the necessity to lower tariffs on essential components that China cannot source domestically or find alternatives for.
Despite this significant policy shift, Chinese officials have not confirmed the exemptions publicly. The General Administration of Customs and local customs offices in Shenzhen and Zongshan claimed they were unaware of any such changes. CNN has attempted to obtain comments from China’s ministries of commerce and foreign affairs but has not received a response.
According to Chen Shaoling, an import agency manager, the latest exemptions apply to eight categories of integrated circuits, with most semiconductors excluded from the memory chip category. Chen learned about the exemptions while processing customs clearance for her clients, noting that she would not have known if not for the declaration filing. Local customs authorities in Shenzhen appeared to have informed select companies about the tariff changes.
Shenzhen HJET Supply Chain announced on social media that they received a new notice from China Customs regarding specific tariff codes related to semiconductors, indicating that imports under these codes would now face zero tariffs upon entry into China. A staff member from HJET confirmed they had been informed by local customs about this policy update.
Another Shenzhen-based company, Taihang Semiconductor, also received notice from customs but chose not to disclose additional details. One team member remarked that this development is definitely positive. Caijing, a Chinese business publication, reported on the tariff exemptions, citing multiple tech firms engaged in semiconductor imports, although the article was pulled from publication shortly after.
In summary, China’s quiet roll-back of high tariffs on certain semiconductor imports from the US suggests a strategic adjustment in response to trade dynamics, aimed at alleviating pressure on critical supply chains. However, the lack of official confirmation raises questions about the permanence and broader implications of this policy shift.