The exemptions will be effective from September 17 to September 16, 2020.
"American companies continue to do well in China, but the trade conflict now shadows many businesses", said Eric Zheng, chairman of the trade association.
"The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October but is probably more a means of supporting the economy", ING's Greater China economist Iris Pang wrote in a note.
Chinese President Xi Jinping voiced distrust of U.S. President Donald Trump during his meeting with the Japanese Prime Minister Shinzo Abe in June amid the U.S.More news: Democrats’ chorus for impeachment is gaining strength
Significant US exports to China, like pork, soybeans and American-made cars, are among the goods that will still be hit by the hefty taxes.
The items in the two lists posted on the ministry's website will not be subject to the additional duties imposed by China on US goods "as countermeasures to measures under section 301 of the US Commerce Act", the Chinese agency said.
The products include whey and fishmeal used for animal nutrition, and some lubricants, Reuters said, citing a statement from the Chinese Treasury.
The United States and China are planning to hold ministerial- level trade talks in September in Washington, but it is uncertain whether there will be any breakthrough. "The time is now to strike a deal that addresses the U.S.' legitimate concerns about market access, forced technology transfer, subsidies and digital trade, while concurrently removing punitive and retaliatory tariffs".
Beijing has said it would work on exempting some US products from tariffs if they are not easily substituted from elsewhere.More news: Zimbabwe gov't releases burial program for Mugabe
China has imposed several rounds of duties on U.S. goods in retaliation against U.S. Section 301 tariffs, beginning previous year in July and August with a 25% levy on about $50 billion of U.S. imports.
Only 16 items are exempt from extra tariffs of 25%.
Although Abe told Xi that Trump trusts the Chinese president, Xi continued to air his grievances about his USA counterpart, the diplomatic source told Kyodo News.
Further rounds of Chinese exemptions will be announced in due course, the ministry said.
The National Retail Federation (NRF) recently reported that shippers responded to the last round of tariff increases on imports from China by front-loading containers into US ports in July, and NRF is projecting that container volumes will rise in October and peak in November.More news: Apple accuses Google researchers of 'stoking fear' about iPhone hack
Earlier on Wednesday, a survey by a prominent American business association showed the trade war is souring the profit and investment outlook for USA companies operating in the world's second-biggest economy.