China is weighing the possibility of dropping its reciprocal 125% tariffs on certain US goods, including medical equipment, chemicals like ethane, and aircraft leases, Bloomberg reported, citing sources.
The news of potential exemptions sparked a market rally, with the offshore yuan rising to 7.2857 per dollar, recovering the 0.1% loss it had seen earlier on Friday.
Beijing’s move would mirror recent US tariff exemptions, which excluded smartphones, computers and some other electronics imported largely from China.
China and the US have not held negotiations on the tariff issue, Chinese Foreign Ministry spokesman Guo Jiakun said on Thursday when asked to confirm the American side's claims that Beijing and Washington are negotiating a settlement to the trade war.