China has decided to scrap the 125% tariff it had recently imposed on U.S. ethane imports, according to people familiar with the matter. The move is intended to ease the financial burden on Chinese petrochemical companies that depend heavily on U.S. ethane, a crucial raw material sourced from shale gas.
China buys almost half of all U.S. ethane exports. In 2024, the U.S. exported 492,000 barrels per day. This is expected to rise to 530,000 barrels per day in 2025 and 630,000 barrels per day in 2026.
Leading Chinese companies like Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are among the main buyers of U.S. ethane. Meanwhile, American firms such as Enterprise Products Partners and Energy Transfer are major suppliers. Official U.S. data highlights that China consumes almost half of America’s ethane exports.
The steep tariff was initially introduced as part of China’s response to new U.S. tariffs under President Donald Trump. However, Beijing quietly removed the duty in recent days, signaling a more strategic approach to protect key sectors.
This rollback is part of a broader effort by China to shield essential industries from the ongoing trade tensions. Similar exemptions have already been granted for imports of pharmaceuticals, semiconductors, and aircraft engines.
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