China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

China has quietly exempted from tariffs some semiconductors made in the United States, in an attempt to protect its leading technology companies from a bitter trade showdown with President Donald Trump.

President Trump’s apparent softening on tariffs has strengthened Chinese officials’ resolve that he will eventually cave if they wait him out.