AsianFin -- More signs show China’s hard stance on U.S. tariffs is easing as the Trump administration is softening the blow of the hefty levies.
Credit：China Daily
The Chinese government has waived the 125% tariff on ethane imports from the United States imposed earlier this month, among a group of products that have received levy-free, Reuters cited people familiar with the matter on Tuesday. It was said that the waiver for U.S. ethane had been implemented in recent days thought not been made public yet.
The report noted the recent waiver will ease pressure on Chinese firms that import U.S. ethane for petrochemical production as well as provide an outlet for the natural gas liquid, a byproduct of U.S. shale gas production. It suggested Chinese ethane importers including Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical and Wanhua Chemical Group and U.S. exporters such as Enterprise Products Partners and Energy Transfer would benefit from the waiver.
China buys nearly half of U.S. ethane exports, which hit a record of 492,000 barrels per day, or bpd, in 2024, according to the U.S. Energy Information Administration (EIA). The agency within the Department of Energy expects U.S. ethane exports to expand to 530,000 bpd this year and to 630,000 bpd next year.
Beijing last week has been reportedly mulling exempting some U.S. imports from 125% tariffs or has taken actions to grant certain exemptions.Bloomberg reported Friday Beijing is weighing granting pause on 125% retaliatory tariffs on some U.S. goods. The Chinese authorities are considering removing extra levies for medical equipment, some industrial chemicals like ethane and aircraft leases, per the report.
China has exempted some U.S. goods from tariffs and is asking firms to identify critical goods they need free of levy, Reuters Friday quoted businesses that have been notified.
The American Chamber of Commerce in China (AmCham) said on Friday that companies in the pharmaceutical sector had reported that they had been able to import drugs to China over the past week with tariff exemptions. “It's pharmaceutical firms on the exemptions, but I believe it is drug-specific and not a sector-wide exemption,” said AmCham President Michael Hart when questioned if he could specify which sectors those companies came from.
China seems to have quietly rolled back 125% tariffs on some U.S.-made semiconductors, CNN on Friday learned from import agencies in Shenzhen. The import agencies discovered the exemption this week during routine customs procedures, though Beijing hasn’t made any official announcement. They said the exemptions apply to integrated circuits, also known as microchips or semiconductors.
When asked to confirm the report about China’s considering granting exemptions for some U.S. imports, Chinese Foreign Ministry spokesperson Guo Jiakun Guo Jiakun said he is not aware of the specifics, and he refer the report to competent authorities.
On a Friday press conference, Guo was questioned by whether the Trump administration tried to reach out to Beijing and if so, is China willing to engage in trade talks. "China and the U.S. are not having any consultation or negotiation on tariffs. The U.S. should stop creating confusion," Guo stated.
U.S. Treasury Secretary Scott Bessent on Monday said that he believes it’s up to China to deescalate on the tariff war, because “they sell five times more to us than we sell to them, so these 125 percent tariffs are unsustainable.”
When asked about Bessent's comment, Guo at a press conference on Tuesday reieterated there is no winner in a tariff war or a trade war. This tariff war is launched by the U.S. If a negotiated solution is truly what the U.S. wants, it should stop threatening and exerting pressure, and seek dialogue with China based on equality, respect and mutual benefit, said Guo.
