In a significant shift amid ongoing trade friction with Washington, China has quietly lifted a 125% tariff on ethane imports from the United States, easing pressure on Chinese petrochemical companies and offering relief to U.S. exporters.
According to sources cited by Reuters, the tariff—which was introduced earlier this month as part of a broader retaliatory package against U.S. trade measures—was recently waived for ethane, though the decision has yet to be officially announced by Beijing. China’s Ministry of Commerce and Customs authorities have not publicly commented on the development.
The tariff removal follows Beijing’s move last week to exempt certain U.S. goods—including pharmaceuticals, microchips, and aircraft engines—from levies, while also soliciting input from domestic firms on other critical imports that should be considered for exemption.
The initial 125% tariff was imposed after U.S. President Donald Trump sharply escalated duties on Chinese goods, targeting what he described as “unfair trade practices.” On April 9, Trump announced an increase in tariffs on Chinese products to 145%, while offering temporary relief to other countries.
Ethane, a key input in petrochemical manufacturing, is a byproduct of U.S. shale gas production. In 2024, U.S. ethane exports reached a record 492,000 barrels per day, nearly half of which were purchased by China, according to the U.S. Energy Information Administration. Major Chinese importers include Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group. On the U.S. side, major exporters include Enterprise Products Partners and Energy Transfer.
The policy reversal appears to reflect Beijing’s recognition of the economic strain the tariff posed on domestic industries. Ethane now joins a growing list of U.S. exports that have been granted temporary relief amid heightened economic and geopolitical tensions.
The development comes just hours after U.S. Treasury Secretary Scott Bessent doubled down on the Trump administration’s hardline trade stance. Speaking at the White House, Bessent warned that the tariffs could cost China millions of jobs if the country refuses to adjust its trade practices.
“They sell almost five times more goods to us than we sell to them,” Bessent said. “The onus will be on them to take off these tariffs. They’re unsustainable for them.”
