By Andrew Silver, Trixie Yap and Brenda Goh (Reuters) -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,

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.

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