​On Wednesday, it was reported that China had quietly compiled a list of US-made goods exempt from its 125% tariffs, aiming to ease trade tensions without public concessions. Companies, particularly those reliant on US technologies—such as pharmaceuticals and chipmakers—are being discreetly informed about these exemptions. The list, not publicly disclosed, appears to be expanding; for instance, China recently waived tariffs on US ethane imports.

This approach allows Beijing to maintain a firm public stance while offering behind-the-scenes relief. Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals. Treasury Secretary Scott Bessent said Tuesday that the "onus" was on China to deescalate tensions.

Meanwhile, President Donald Trump defended the 145% tariffs on Chinese imports, saying China "deserves it" and would likely "eat" the costs to shield US consumers. He dismissed inflation concerns, even as companies like Temu and Shein pass costs on to shoppers. His comments contrast with quieter moves inside the administration to consider phased tariff reductions and revive trade talks with Beijing—though no formal negotiations have begun.

But with 145% tariffs on China now in place for several weeks, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, per Bloomberg. Experts are warning of coming supply shortages and layoffs in sectors like trucking, logistics, and retail. Some tariff relief is on the way for automakers after President Trump signed an order offering exemptions to certain car and parts tariffs.

The order clarifies that companies already paying tariffs on imported vehicles won't be charged other levies, such as on steel. The US also eased duties on foreign parts. The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers in the face of 25% tariffs on vehicle and parts imports.

General Motors (GM) on Tuesday became the latest company to pull its forward guidance, warning of tariff-related uncertainty. There is also evidence that companies are stockpiling goods. The US trade deficit widened sharply in March, as imports to the US surged ahead of Trump's April 2 "Liberation Day" announcement.

Even as the bluster continues, the signs of a walk back have boosted Wall Street hopes for broader tariff deescalation after an intense back-and-forth between the world's two largest economies.