China has exempted the 125% tariff on US ethane imports imposed earlier this month, alleviating pressure on Chinese companies that rely on ethane imported from the US for petrochemical production, reports Reuters .
China has increased tariffs on US imports, including ethane, to 125% this month in retaliation for higher duties imposed by US President Donald Trump on the world’s second-largest economy.
However, no official announcement has been released by China’s Ministry of Commerce and China Customs, which oversees this matter.
China is a major buyer of ethane produced in the US, accounting for nearly half of US ethane exports. Ethane exports to China reached a record high of 492,000 barrels per day in 2024, according to the US Energy Information Administration.
This latest decision involving US ethane imports is part of China’s efforts to exempt
certain US imports from its 125% tariffs, after the US imposed a total of 145% tariffs on Chinese imports.
Earlier, China had reportedly granted tariff exemptions on certain pharmaceutical, aerospace, and semiconductor products. This move was part of Beijing’s strategy to alleviate the economic impact of its trade war with the US.
Similarly, the Trump administration reportedly expressed a willingness to ease tensions in the ongoing trade war between the world’s two largest economies.
