AsianFin -- China has drawn up a list of U.S.-made products that will be exempt from its newly imposed 125% tariffs and has begun quietly informing select companies about the policy, Reuters reported, citing two people familiar with the matter, as Beijing looks to cushion the domestic impact of escalating trade tensions with Washington.

While China has already granted exemptions on key imports such as certain pharmaceuticals, semiconductors, and aircraft engines, Reuters reported Friday that authorities have been asking companies to flag essential goods they need free of additional levies. However, the existence of a formal exemption list—described as a "whitelist"—had not been disclosed until now.

The discreet rollout signals a dual-track strategy from Beijing: publicly maintaining a firm stance in the face of the U.S.'s sweeping 145% tariffs, while privately offering selective concessions to mitigate economic disruption and supply chain stress.

The sources said it remains unclear how many products are on the list or which specific items have been included, and Chinese authorities have yet to publish the exemptions. Both individuals requested anonymity as the information remains confidential.