China quietly lifted 125% tariffs on some U.S.-made semiconductors, according to import agencies in Shenzhen, as Beijing looks to shield its tech sector from trade war fallout. The move, which has not been officially announced, covers integrated circuits but leaves memory chips out.

The tariff rollback comes after China raised levies on all U.S. goods to 125% earlier this month, following President Donald Trump's decision to hike tariffs on Chinese imports to 145%. Despite efforts to boost its domestic chip industry, China imported $11.7 billion in U.S. semiconductors last year.

Shenzhen customs offices informed companies that eight categories of semiconductor products are now exempt, but national authorities have stayed silent. Duncan Clark of BDA said the exemptions highlight China's continued reliance on foreign chipmakers, a gap that benefits U.S. companies like Intel (INTC, Financials), Texas Instruments (TXN, Financials), and GlobalFoundries (GFS, Financials).

China also removed tariffs on U.S. aircraft parts, including engines and landing gear, according to Safran. Earlier changes spared chips designed by American firms but made outside the U.S., like Nvidia (NVDA, Financials) products manufactured by Taiwan Semiconductor Manufacturing Company (TSM, Financials).

The latest exemptions focus on logic chips, while memory chips — an area led by South Korean firms — remain under higher tariffs.

Trump has hinted that tariffs could "come down substantially," but Beijing has dismissed talk of new negotiations, saying any discussions depend on the full removal of U.S. tariffs.