It is the first move that spares certain U.S. imports from the trade war, according to the report.
The exception is scheduled to go into effect Sept. 17 and it will be valid for a year.
Some of the drugs on the list include floxuridine, cyclophosphamide, gefitinib and raltitrexed. They are all cancer treatment drugs, chemotherapy or inhibitors that block the activity that contributes to the growth and survival of cancer cells.
The announcement comes as high-level trade officials from China and the U.S. prepare to meet in Washington next month.
The U.S. and China have imposed tariffs on billions of dollars worth of goods.
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