China Removes Tariffs on U.S. Semiconductors and Aircraft Parts Amid Trade Tensions

China has quietly abolished retaliatory tariffs on select U.S.-made semiconductors and aircraft components, marking a potential shift in trade relations between the two nations. The move, confirmed by import agencies in Shenzhen but not officially announced by Chinese customs, follows signals from the U.S. about easing tariff policies¹. This development comes amid ongoing trade tensions, with both countries imposing steep tariffs on each other’s goods over the past year.

Unannounced Tariff Removal and Industry Impact

China has removed 125% tariffs on critical U.S. imports, including semiconductors and aircraft parts like engines and landing gear. The decision appears targeted at addressing supply chain gaps, particularly in China’s tech and aviation sectors. In 2024, China imported $11.7 billion worth of U.S. chips, highlighting continued reliance on foreign semiconductor technology despite domestic production efforts². French engine manufacturer Safran noted that exemptions for aviation components could ease production bottlenecks for Chinese aircraft manufacturers.

U.S.-China Trade War Context

The tariff removal occurs against a backdrop of escalating trade measures. U.S. tariffs on Chinese goods recently reached 145%, while China retaliated with 125% tariffs on American products. However, former U.S. President Donald Trump hinted at reducing tariffs to 50–65% if negotiations progress³. The U.S. had already exempted some electronics, including semiconductors, from tariffs earlier in April, suggesting reciprocal de-escalation.

Broader Implications and Diplomatic Signals

Beyond semiconductors and aviation, China is reportedly drafting a list of additional tariff-exempt goods, including medical equipment and industrial chemicals. Bloomberg reports suggest Beijing may expand exemptions to pharmaceuticals and other sectors⁴. Diplomatic channels remain cautious, with unconfirmed talks between Trump and Xi Jinping. China appears to prefer delegate-led negotiations, possibly to avoid the appearance of concessions under pressure.

Strategic Considerations for Supply Chains

The quiet nature of China’s tariff adjustments suggests a balancing act between economic needs and political messaging. By avoiding formal announcements, Beijing may aim to downplay reliance on U.S. technology while pragmatically addressing supply chain vulnerabilities. The exemptions align with reports of Chinese firms seeking waivers for “irreplaceable” U.S. imports to prevent production halts⁵.

Conclusion

China’s selective tariff removal reflects both economic necessity and strategic calculation. While tensions persist, these incremental steps could signal a pathway to broader trade normalization. Observers will monitor whether the U.S. reciprocates with further tariff reductions and whether China expands exemptions to additional sectors.