China’s removal of the 125% tariff on US ethane imports, announced on April 29, 2025, reverses a trade war escalation that began with a 15% tariff in February 2025, as reported by RBN Energy, signaling a potential de-escalation amid economic pressures like deflation and a trillion-dollar trade surplus in 2024.
Ethane, a key petrochemical for plastics production, is critical for China, which relies on US imports; the tariff removal could stabilize China’s domestic prices and boost US ethane exports, previously at risk of collapse due to high tariffs.
his move aligns with recent US-China tariff negotiations, with US Treasury Secretary Scott Bessent noting a “path” to agreement on April 28, 2025, and follows China’s exemptions on other US goods like aerospace parts, indicating a broader trend of trade concessions.
Amid increased uncertainty, the global economy is looking for any signs of de-escalation between both sides, with worries of a US-China trade war brewing.Since early April, the world has been confronted with growing geopolitical tensions between the United States and China. The former announced a sweeping America-first tariff plan on nearly all countries. Subsequently, China’s reciprocal action saw them face import duty increases of up to 245%.
Now, global markets are anxiously awaiting any sign of decreasing tensions between the two sides. In what is a major development, China has reportedly removed its 125% tariff on US ethane imports. Specifically, sources told Reuters that the waiver took place in recent days, although it has yet to be publicly announced.
In 2024, China purchased a record 492,000 barrels of ethane from the US per day. Altogether, the second-largest economy in the world was responsible for buying nearly half of all the ethane that the United States exported. In 2025, the US Energy Information Administration projected those exports to increase to 530,000 barrels per day.
