China Reportedly Adds US Ethane Imports to Growing List of Exemptions
The Chinese government has reportedly added U.S. ethane imports to a growing list of unannounced exemptions to its universal 125% tariff rate on U.S. products.
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China on April 29 removed the 125% tariff rate on imports of ethane from the U.S., Reuters reported. As of our press time, China's ministries of Commerce, Finance and Foreign Affairs had not published the exemption.
This exemption is the latest in a growing list of U.S. products that the Chinese government has apparently deemed critical to domestic industry or consumption (see 2504250056). China made no announcements about previous exemptions. Trade observers have said Beijing has backed itself into a "hard line stance" against the U.S. tariffs and may be unwilling to appear as if it's granting any concessions (see 2504220029).
In 2024, China bought roughly half of U.S. ethane exports at 227,000 barrels per day out of 492,000 bpd of total ethane exports, according to the U.S. Energy Information Administration. Ethane is a feedstock for producing ethylene, which can be processed into plastics.