Winning: China Blinks, Backs Down on Some Tariffs, With Even More to Come

There's good news on the tariff battle with China.

According to multiple reports, China is quietly scaling back and suspending some of its tariffs against the U.S. and is considering even more exemptions.

China has quietly exempted some semiconductors from tariffs, and is considering more exclusions for certain US industries [....]
Taxes on at least eight classifications of US microchips have been lowered to zero, a huge drop from China’s 125% retaliatory tariff on all other US goods, Caijing, a Chinese financial magazine, reported on Friday.
Though the article was later deleted, two importers confirmed that certain semiconductors have been spared from the hefty duties, according to The Washington Post.
Chinese officials are weighing further exemptions on medical equipment and some industrial chemicals like ethane, sources familiar with the matter told Bloomberg.

They reportedly are exempting things like plane leases as well.

“It’s another step toward a de-escalation of the trade war,” Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities Pte, said, attributing strength in Hong Kong, Chinese and Japanese stocks to the report. While most don’t expect the US and China to set aside their differences quickly, he said “it would appear the worst may truly be over.”

That sounds pretty positive. That kind of assessment is likely to drive the stock market here up as well, and make people feel more secure on the trade front.

Although, to be fair, it looks like over the past three days or so, the market has stabilized, with the Dow in the neighborhood around 40,000. It's no longer reacting wildly to every announcement. So that might align with what Wong is saying. This will help to shore that up further.

China signaled on Wednesday that it was open to trade talks with the U.S. The reason they're dropping things quietly is that they don't want to be seen as having blinked, but it's still positive movement. The Trump team had indicated they would be open to reductions in tariffs, but not unilaterally.

BREAKING 🚨 Press Secretary Karoline Leavitt just stunned the world saying there will be no unilateral Tariff reduction with China

‘China needs to make a deal with the United States of America’

WE WILL NOT BACK DOWN 🔥 pic.twitter.com/zOc6Xu61BX
— MAGA Voice (@MAGAVoice) April 23, 2025

Hoo Boy: Kevin O'Leary Lights Up the Chinese, Explains Why They Don't Want to Play These Tariff Games

Bottom line? China is hugely dependent on us, and these tariffs and finally calling them out on their harmful conduct toward us was long overdue and is now putting them over a big barrel. If they don't make moves to appease the U.S. or come to the table, they are going to be in huge economic trouble, which could then lead to trouble from their people, even in such a tightly controlled society. As Shark Tank's Kevin O'Leary observed, "Xi can only stay the Supreme Leader if people are employed."

Looks like now China has moved, the next step will be to work it out at the table.

Editor's Note: President Trump is leading America into the "Golden Age" as Democrats try desperately to stop it.

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