According to sources, Beijing has quietly once again lifted import tariffs on some American goods. Reports suggest that the Chinese government plans to expand the list of American products exempt from tariffs to 131 product categories, indicating that China has had to back down in the tariff war initiated by Trump.
As reported by Reuters on April 29, Beijing has waived the 125% import tariff on American ethane, aiming to relieve the pressure on Chinese petrochemical companies importing ethane from the U.S. Additionally, this move opens up channels for U.S. liquefied natural gas exports.
According to data from the U.S. Energy Information Administration, China has purchased nearly half of the total U.S. ethane exports.
In early April, in response to Trump’s increased tariffs, China raised tariffs on American goods, including ethane, to 125%.
However, as China is the world’s largest producer of plastics and primarily imports ethane from the U.S. as a raw material, imposing retaliatory tariffs on American goods effectively meant constraining its own supply chain. Consequently, the import tariff on ethane had to be lifted.
Previously, for similar reasons, Beijing had granted import tariff exemptions to American goods such as pharmaceuticals, microchips, and aircraft engines.
These exemptions of import tariffs on American goods have been carried out discreetly without public announcement, showing that while Beijing has had to concede, it still aims to maintain a tough image in the face of the U.S.
According to Reuters, Michael Hart, the chairman of the China-U.S. Chamber of Commerce, stated that the Chinese Ministry of Commerce has been consulting with companies to identify which American goods cannot be replaced. Failure to import these goods could lead to disruptions in the supply chain.
Recently, a “consideration list for tariff exemptions” covering 131 product categories has been circulating on social media and within the industry. The list includes semiconductors, vaccines, chemicals, aircraft engines, and more.
In 2023, a study by the Center for Strategic and International Studies (CSIS) found that China is reliant on imports from the U.S. and its allies for at least 70% of over four hundred products. The U.S. is China’s largest importer in this regard.
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