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.

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

China imposed 125% tariffs on all U.S. imports earlier this month in a tit-for-tat response to the Trump administration’s “reciprocal” tariffs against China.