China and the United States reopened negotiations on Tuesday (the 9th). The Trump administration decided on the same day to exempt 110 kinds of Chinese goods from additional tariffs, including medical equipment and capacitors, which will help ease trade tensions between the two countries and further promote trade negotiations.
The United States imposed a 25% tariff on Chinese products worth $34 billion from July 6, 2018. On Tuesday, Washington announced that it would waive 110 taxes, and the exemption period will be traced back to the date of tariff implementation, with a term of one year from Tuesday.
According to the report, Washington has imposed additional tariffs on Chinese-made equipment and parts, and US companies have significantly reduced their revenues. However, the actual price exemption for this time is limited to a small part of the varieties required by US companies. For example, among the 12 Chinese products that Medtronic Plc, a US medical device company, requested to exempt from tariffs, the only one that was actually exempted was the one used to treat liver tumor devices.
Also exempted are the tantalum capacitors from Palo Alto Networks Inc. According to the company, the United States does not produce similar substitutes, and the equipment is not listed in the “Made in China 2025” industrial development plan. Varian Medical Systems Inc. also said that due to the lack of good substitutes in the market, tariffs have hit the company and some radiotherapy equipment were eventually exempted.
