China is weighing an exemption for some U.S. imports from its tariffs as the economic fallout in its ongoing trade war with Washington becomes more apparent.

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.

Despite the tough rhetoric flying between Washington and Beijing, the impact of such elevated tariffs on some industries is prompting both governments to consider concessions to protect their own economies.