China Removes 125% Tariff on U.S. Ethane Imports.

In a significant shift in trade relations, China has lifted its 125% tariff on U.S. ethane imports. This move, which follows ongoing trade tensions between the two nations, is aimed at easing the economic strain on China’s petrochemical industry, which relies heavily on U.S. ethane.

The tariff, originally imposed in April 2025 as a retaliatory measure, had restricted the flow of ethane, a byproduct of U.S. shale gas production, to China. Major Chinese companies, including Sinopec and Wanhua Chemical, depend on these imports for their operations.

By removing the tariff, China seeks to stabilize its domestic supply chain, while providing U.S. exporters with renewed access to this key market. This step is seen as a potential sign of de-escalation in the ongoing trade war, though the broader implications for U.S.-China relations remain to be seen.

The decision is expected to benefit both countries, with China securing a vital raw material and the U.S. receiving an important export outlet, marking a tentative shift toward improving economic ties.

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