On Tuesday, China announced it would lift a 125% tariff on U.S. ethane imports, signaling a potential thaw in U.S.–China trade tensions. The tariff, imposed in retaliation to President Trump’s trade policies, had heavily impacted American ethane exporters like Enterprise Products Partners and Energy Transfer. China, which buys nearly half of U.S. ethane exports, relies on imports for companies such as Satellite Chemical and Sinopec.
The Trump administration sees the move as a win, with Treasury Secretary Scott Bessent calling it proof the tariff strategy is working. He warned China of potential job losses if it doesn’t ease trade barriers further. Ethane joins other U.S. exports like pharmaceuticals and microchips recently exempted from Chinese tariffs. Bessent also hinted at upcoming trade deals with India, South Korea, and Japan.
