Levies on certain U.S.-made microchips have been dropped, importers say. Meanwhile, China denied President Trump’s claims that talks to reduce tariffs are happening.

China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

China has granted some tariff exemptions on American imports and is considering lifting other duties, according to the local US business lobby group, in a possible sign of relief for companies hit by Donald Trump’s trade war.