China has quietly lifted its steep retaliatory tariffs on certain semiconductor imports from the United States, a move that may signal a softening of trade tensions between the two economic superpowers.
According to a report published Friday by the respected Chinese business magazine Caijing, Beijing has exempted at least eight categories of integrated circuit (IC) imports from the 125% tariffs imposed earlier this month. These levies were part of China’s response to former U.S. President Donald Trump’s tariffs on Chinese goods. However, tariffs on memory chips remain in place.
While China’s customs authorities have not made any formal announcement, the Caijing report — which was later removed from both its website and WeChat channel — claimed domestic companies were informed on Thursday that duties already paid between April 10 and 24 on these specific semiconductor imports would be refunded.
Neither the China Semiconductor Industry Association nor China’s customs office responded to requests for comment, and multiple calls to the customs news office on Friday went unanswered.
The tariff exemptions, if confirmed, suggest Beijing is looking to reduce friction with Washington while safeguarding its own semiconductor supply chain. China imported $88 billion worth of chips in the first quarter of 2025 — a 3.2% year-on-year increase, according to customs data — highlighting the country’s ongoing reliance on foreign semiconductors.
The news triggered mixed reactions in financial markets. In Hong Kong, shares of Semiconductor Manufacturing International Corporation (SMIC), China’s leading chip foundry, fell by 1.3% on Friday morning, while Hua Hong Semiconductor, the second-largest, dropped 4.4%. The broader Hang Seng Tech Index, however, rose nearly 1.9%.
Beijing’s decision to maintain tariffs on U.S.-made memory chips while exempting other categories reflects a strategic balancing act: protecting domestic manufacturers while ensuring continued access to critical chip technologies.
On April 12, China had imposed sweeping tariffs on all U.S. imports, declaring them “reciprocal” measures following heightened trade actions by the Trump administration. But just a day earlier, Beijing had clarified that tariffs would only apply to semiconductors physically manufactured in the U.S., not those designed there but produced in other countries.
