Catenaa, Thursday, May 01, 2025- China has lifted a steep 125% tariff on US ethane imports in a quiet reversal aimed at easing industrial strain and soothing trade tensions with Washington, the Reuters news agency reported.
The tariff, imposed earlier this month in retaliation for new US duties on Chinese goods, had threatened to squeeze Chinese petrochemical companies that rely heavily on American ethane, a key feedstock derived from shale gas. Ethane is essential in the production of plastics and other petrochemical products.
Two sources familiar with the matter said the waiver was granted in recent days but has not been publicly announced.
Both declined to be identified, citing the sensitivity of the discussions. Chinese officials from the Ministry of Commerce and customs administration were not available for comment, according to Reuters.
The exemption is seen as a part of a broader move by Beijing to blunt the economic fallout from an escalating trade conflict. Other sectors, including pharmaceuticals, aerospace and semiconductors, have also reportedly received similar tariff relief.
China purchases nearly half of all US ethane exports, which reached a record 492,000 barrels per day in 2024.
That figure is projected to rise to 530,000 bpd this year and 630,000 bpd by 2026, according to the US Energy Information Administration.
Major Chinese ethane importers include Satellite Chemical, Sinopec and Wanhua Chemical Group, while top American exporters are Enterprise Products Partners and Energy Transfer.
The move could offer US producers a critical export outlet and may signal a temporary thaw in fraught US-China economic ties.
