The United States will exempt 110 types of Chinese imported goods, including medical equipment and electronic components, from high tariffs.

Summary: According to the Ministry of Commerce website, the US government said on Tuesday that it would exempt high tariffs on 110 Chinese products, ranging from medical equipment to key capacitors, providing relief to some US companies that had said these tariffs hurt their profits. Some of Tesla's Chinese-made car circuits were not exempted.Some of Tesla's Chinese-made car circuits were not exempted.

Reuters, WashingtonJuly 9 - The US government said on Tuesday that it would exempt high tariffs on 110 Chinese products, ranging from medical equipment to key capacitors, providing relief to some US companies that had said these tariffs hurt their profits.

On July 6, 2018, in the first round of the bilateral trade war, the US imposed a 25% tariff on $34 billion worth of Chinese imports. This trade war has disrupted global supply chains and cost billions of dollars. The relatively small exemption list announced today dates back to the effective date of the implementation and will be in effect for one year from Tuesday.

A US official said in an emailed statement that US Trade Representative Lighthizer and Treasury Secretary Mnuchin spoke by Tel with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan on Tuesday to continue negotiations on resolving outstanding trade issues. Negotiations resumed after a two-month hiatus, but the two countries' tit-for-tat tariff dispute has lasted for a year. Washington wants Beijing to address what US officials see as decades of unfair and illegal trade practices.

Before the Office of the United States Trade Representative made the above exemptions, over the past year it has approved1,000 exemptions. The US has imposed tariffs on $250 billion worth of Chinese imports and threatened to impose tariffs on another $300 billion worth of Chinese goods.

At the end of June, US President Trump and Chinese President Xi Jinping met and agreed to suspend tariffs on $300 billion worth of Chinese consumer goods imported to the US while the two sides resumed negotiations.

The Office of the United States Trade Representative exempted a component of equipment used by Medtronic (Medtronic) (MDT.N), the world's largest medical device manufacturer, to treat liver tumors. This was one of 12 exemption requests approved for the company. Medtronic argued that components with higher R&D investment are not manufactured in China, and they face the greatest risk of intellectual property theft.

Cybersecurity companyPalo Alto Networks Inc (PANW.N) also received a tariff exemption for an electronic component imported from China, a tantalum capacitor used to control current in network firewall devices.

The company argued that alternatives are not manufactured in the US, and that this capacitor is not part ofthe "Made in China 2025" plan's high-tech projects. The Trump administration said the plan was unfairly subsidized, leading to the theft of US intellectual property.

Varian Medical Systems Inc (VAR.N) also received tariff exemptions for some of its radiotherapy equipment, after arguing that the tariffs would only harm the company because there were no other good alternatives.

Varian said the tariffs would put it at a disadvantage in competing with European rivals.

This yearIn May, the Office of the United States Trade Representative rejected 5,311 of nearly 13,000 tariff exemption applications.

Tesla (TSLA.O) Some Chinese-made car circuits were not exempted. The Office of the United States Trade Representative said these components are of "strategic importance" to the "Made in China 2025" plan.