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 that have been notified, in the clearest sign yet of Beijing's concerns about the trade war's fallout.

An American business group said that Chinese officials had been surveying companies about American products that are crucial to their supply chains.

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.