China has waived the 125% tariff on ethane imports from the United States imposed earlier this month, two sources with knowledge of the matter said on Tuesday.
The move 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.
Ethane importers in China include Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical and Wanhua Chemical Group while the key U.S. exporters are Enterprise Products Partners and Energy Transfer.
China buys nearly half of U.S. ethane exports, according to the U.S. Energy Information Administration.
China increased its levies on imports of U.S. goods, including ethane, to 125% earlier this month, hitting back at U.S. President Donald Trump’s decision to single out the world’s No.2 economy for higher duties.
The sources said the tariff on ethane had been waived in recent days.
Beijing has already granted tariff exemptions on some products including pharmaceuticals, microchips and aircraft engines and was asking firms to identify critical goods they need levy-free, Reuters reported on Friday.
(Reporting by Siyi Liu, Trixie Yap, Florence Tan and Chen Aizhu; Editing by Susan Fenton)