Beijing has responded to the US decision to exempt consumer electronics from its reciprocal tariffs on Chinese imports, describing it as “a small step by the US toward correcting its wrongful action of unilateral ‘reciprocal tariffs.’” In a statement posted on its official WeChat account on Sunday, China’s Ministry of Commerce urged the US to “take a big stride in completely abolishing the wrongful action” and return to resolving differences through “equal dialog based on mutual respect.”
However, China’s defiant tone suggests that Beijing has no intention of backing down, maintaining its stance that it will never cower to US pressure and is ready to return fire for fire. Meanwhile, President Donald Trump’s exemptions, which many, including some of his supporters, view as caving to pressure, have stirred controversy at home while failing to ease the broader US-China trade conflict.
China’s response, laced with a metaphorical jab—“The bell on a tiger’s neck can only be untied by the person who tied it”—underscores Beijing’s view that the US, as the initiator of the tariffs, must fully reverse its policies.
The exemptions, announced by the US Customs and Border Protection on Friday, cover smartphones, computers, semiconductors, and other electronics, shielding nearly $390 billion in US imports, including over $101 billion from China, based on 2024 trade data. However, China’s Ministry of Commerce made clear that this gesture is insufficient, signaling readiness to escalate further if the US introduces new measures.
Beijing has consistently matched US tariff hikes, recently raising duties on American goods to 125% in retaliation for US rates reaching as high as 145% on Chinese imports.
State media outlets have framed the US move as a reaction to domestic lobbying from tech giants like Apple, which faced potential iPhone price surges to $2,000–$3,500 without relief, and consumer fears of rising costs.
US Exemptions: Is Trump Caving In?
The US exemptions, detailed in a Friday notice, apply retroactively from April 5 and include critical products like memory cards, solar cells, and machines used in semiconductor manufacturing. They also extend to the 10% baseline tariff on goods from most other countries, benefiting manufacturers in nations like South Korea, home to Samsung Electronics.
The decision provides a lifeline for tech firms, including Apple, which assembles 90% of its iPhones in China, and Taiwan Semiconductor Manufacturing Co. (TSMC), which is expanding US-based production. A separate White House memo adjusted small-parcel shipping duties, partially reversing Trump’s earlier push to end the “de minimis” exemption for low-value parcels from China.
President Trump, speaking to reporters on Air Force One on Saturday, said he would provide more details of his exemption plan on Monday.
“I’ll give you that answer on Monday. We’ll be very specific on Monday,” he said.
Sources suggest Monday’s announcement may involve a national security investigation into semiconductor imports, potentially leading to targeted tariffs, indicating that the exemptions may be a temporary maneuver.
However, the decision has sparked backlash among Trump’s base, who see it as a retreat from his “America First” trade agenda.
Analysts attribute the exemptions to intense lobbying from the tech industry, described as a “loud voice” by Wedbush Securities’ Daniel Ives, as well as market pressures after tech stocks lost $773 billion over four days amid tariff fears.
The past weeks have seen the trade war between the U.S. and China escalate, with both sides imposing and increasing tariffs. The US has targeted Chinese goods to address trade imbalances and national security concerns, particularly around semiconductors, while maintaining a 20% tariff on Chinese imports tied to fentanyl precursors, unaffected by the exemptions. China’s retaliatory tariffs have hit US exports hard, particularly in agriculture and automotive sectors, with American farmers and manufacturers facing steep losses.
The exemptions provide breathing room for global supply chains, heavily reliant on Chinese manufacturing, but do not resolve the broader conflict.
As the world awaits Trump’s promised Monday announcement, speculation centers on potential new tariffs, particularly targeting semiconductors. China, meanwhile, shows no signs of softening, with its Ministry of Commerce signaling readiness to counter any fresh US actions.
The trade war’s impact continues to ripple, threatening higher consumer prices and supply chain disruptions.
With $390 billion in trade at stake, the US-China standoff remains a high-stakes battle. However, it is believed that for now, China has the upper hand.
“China is going to make Donald beg and plead for mercy,” Get ready for Xi to do some insane humiliation rituals on Donald all week long,” Spencer Hakimian of Tolou Capital Management, said.
