China's government is weighing the exemption of some U.S. goods from its 125% import tariffs, Bloomberg reported on Friday, as the country grapples with the high economic cost of a trade war.

Officials are considering exempting levies on medical equipment and some industrial chemicals like ethane, Bloomberg reported, citing people familiar with the matter.

Chinese officials are also considering waiving tariffs on plane leases, the report said.

China's potential exemptions mirror those seen with the U.S., which excluded electronics from its 145% tariffs on Chinese imports, amid concerns over sharply increasing costs.

While the U.S. does import far more goods from China, than vice-versa, Beijing's exemptions highlight the reliance on U.S. goods in some facets of its economy.

Still, discussions over exemptions were ongoing and may not proceed, the Bloomberg report said.

The U.S. and China became embroiled in a bitter, tit-for-tat tariff exchange this month, as Trump levied steep duties on Beijing in an apparent attempt to reduce Washington's massive trade deficit.

But China's large trade surplus also stems from its export of goods that are crucial for several key U.S. industries, leaving investors fearful of the economic impact on both sides.

Several U.S. companies were seen racing to shift supply chains away from China. The Financial Times reported on Friday that Apple Inc (NASDAQ:AAPL) was seeking to source all its U.S.-sold iPhones from India and away from China.

Source: Investing.com