China calls US tariff exemptions on electronics a “small step” while demanding complete removal of Trump’s 145% tariffs on Chinese imports as trade tensions continue to simmer between the world’s largest economies.
At a Glance
- US has exempted smartphones, computers, and other electronics from tariffs on Chinese imports while maintaining high duties on other goods
- China’s Ministry of Commerce described these exemptions as a “small step” and urged the US to cancel all “reciprocal tariffs”
- Economic tensions have escalated with US tariffs on Chinese products at 145% and China retaliating with 125% tariffs on US exports
- US Commerce Secretary suggests Apple production could move to automated US facilities rather than relying on Chinese labor
- Analysts warn that bringing manufacturing back to the US will take years despite tariff policies
China’s Limited Satisfaction with Tariff Exemptions
The Chinese government has responded to the United States’ decision to exempt certain electronics from steep tariffs with measured approval but insists much more needs to be done. In an official statement this weekend, China’s Ministry of Commerce characterized the move as merely a “small step” in correcting what they view as America’s misguided trade policies. The exemptions apply specifically to computers, smartphones, semiconductor manufacturing equipment, and integrated circuits – products representing over $101 billion in Chinese exports to America.
China’s Ministry of Commerce (MOFCOM) said on Sunday that the US’ move to exempt ‘reciprocal tariffs’ on some products is a ‘small step’ for the US to correct its erroneous practice, while urging the US to make a ‘big step’ by canceling the ‘reciprocal tariffs,’ and return to the right path of mutual respect and resolving differences through equal dialogue.
Beijing has called for the complete cancellation of what it terms “reciprocal tariffs,” arguing that the trade dispute has disrupted international commerce and harmed business operations without actually resolving issues for the United States. Analysts suggest the exemptions likely came in response to both international opposition and domestic economic concerns within the US, where consumers would face substantially higher prices on popular electronic goods.
Escalating Economic Tensions
The partial tariff relief comes amid a significant escalation in the US-China trade conflict. President Trump has intensified economic pressure on Beijing, raising total tariffs on Chinese goods to an unprecedented 145%. China has responded with retaliatory tariffs of 125% on American exports, creating one of the most heated trade standoffs in modern economic history. The dispute extends beyond mere tariffs, affecting company blacklisting, pausing the TikTok sale, and Chinese importers avoiding US agricultural products.
“We’ll see what happens with China. We would love to be able to work a deal. We’re resetting the table,” said President Trump.
Despite granting exemptions for consumer electronics, the US Commerce Department has indicated that separate tariffs might still be imposed on semiconductors in the future. This possibility of additional targeted duties has kept markets on edge. The broader trade conflict has significantly impacted global markets, with investors selling US government bonds and the dollar declining in value.
US CHINA TRADE WAR LATEST UPDATES
On April 11 SCMP reports Xi Jinping is set to host EU leaders in July to discuss ongoing trade tensions.
Trump warned that China must be the first to de-escalate the US tariff war, according to reports.
The following day, Trump announced… pic.twitter.com/Z4AWAZqDbX
— Geo View (@theGeoView) April 12, 2025
Manufacturing Realities and Future Outlook
US Commerce Secretary Howard Lutnick has suggested that electronics production could eventually move from China to America through automation rather than human labor. “We are going to replace the armies of millions of people — well, remember, the army of millions and millions of human beings — screwing in little screws to make iPhones. That kind of thing is going to come to America. It’s going to be automated,” Lutnick stated, highlighting the administration’s manufacturing vision.
“The exclusions should be made out of pragmatic considerations, since the main victims of the US’ steep reciprocal tariffs are American users who will have to pay extremely higher prices for many products,” Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times on Sunday, noting that ‘American consumers have demand for many Chinese goods’.
US retailers have already begun shifting supply chains away from China to countries like Indonesia, the Philippines, and Cambodia. Meanwhile, Chinese Premier Li Qiang has emphasized expanding domestic demand as a long-term strategy in response to American tariffs. Analysts caution that despite the strategic intentions behind tariff policies, bringing manufacturing back to the United States will take years, not months. Indirect supply chains through countries like Vietnam and Mexico may fill gaps if US-China trade volumes decrease significantly.
The financial relationship between the two nations, particularly China’s holding of US sovereign debt, may ultimately prevent a complete economic decoupling. Both nations remain economically intertwined despite the escalating rhetoric and trade barriers.
