Apr 30 2025, 12:19 PM, updated 8 months ago
https://archive.is/20250429211800/https://w...say-2025-04-29/
Summary:
- Tariff waiver eases pressure on Chinese petrochemical firms
- China's tariff waiver not publicly announced yet
- China buys nearly half of US ethane exports
QUOTE
SINGAPORE, April 29 (Reuters) - 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, among a group of products that have been granted exemptions.
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.
The sources said the tariff on ethane had been waived in recent days. One of them said the waiver has not been publicly announced. They declined to be named due to the sensitivity of the matter.
China's Ministry of Commerce and China customs could not be immediately reached after office hours.
Reuters reported last week that some pharmaceutical, aerospace and semiconductor products had also been granted tariff exemptions as Beijing tries to blunt the economic impact of its trade war with the United States.
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.
China buys nearly half of U.S. ethane exports, which hit a record of 492,000 barrels per day in 2024, according to the U.S. Energy Information Administration. The EIA expects U.S. ethane exports to increase to 530,000 bpd in 2025 and to 630,000 bpd in 2026.
Ethane importers in China include Satellite Chemical (002648.SZ), SP Chemicals, Sinopec (600028.SS), Sanjiang Fine Chemical (2198.HK), and Wanhua Chemical Group (600309.SS), while the key U.S. exporters are Enterprise Products Partners (EPD.N), and Energy Transfer (ET.N).
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.
The sources said the tariff on ethane had been waived in recent days. One of them said the waiver has not been publicly announced. They declined to be named due to the sensitivity of the matter.
China's Ministry of Commerce and China customs could not be immediately reached after office hours.
Reuters reported last week that some pharmaceutical, aerospace and semiconductor products had also been granted tariff exemptions as Beijing tries to blunt the economic impact of its trade war with the United States.
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.
China buys nearly half of U.S. ethane exports, which hit a record of 492,000 barrels per day in 2024, according to the U.S. Energy Information Administration. The EIA expects U.S. ethane exports to increase to 530,000 bpd in 2025 and to 630,000 bpd in 2026.
Ethane importers in China include Satellite Chemical (002648.SZ), SP Chemicals, Sinopec (600028.SS), Sanjiang Fine Chemical (2198.HK), and Wanhua Chemical Group (600309.SS), while the key U.S. exporters are Enterprise Products Partners (EPD.N), and Energy Transfer (ET.N).
China exempts some goods from US tariffs
https://archive.is/20250426180625/https://w...ays-2025-04-25/
Summary:
- China exempts some U.S. imports from 125% tariffs
- Beijing seeks to mitigate economic fallout from trade war
- Some recent imports from US have not been subject to tariffs, AmCham says, citing members
QUOTE
April 25 (Reuters) - China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses that have been notified, in the clearest sign yet of Beijing's concerns about the trade war's fallout.
Beijing's exemptions, which business groups hope would extend to dozens of industries, pushed the U.S. dollar up slightly and lifted equity markets in Hong Kong and Japan.
But, he cautioned: "It's clear that neither the U.S. nor China want to be the first in reaching out for a deal."
China has not yet communicated publicly on any exemptions.
U.S. President Donald Trump told TIME magazine in an interview that U.S.-China talks were taking place on tariffs, and that Chinese President Xi Jinping had called him. Beijing has so far disputed the U.S. characterization of talks.
"He's called. And I don't think that's a sign of weakness on his behalf," Trump told TIME. He did not say when Xi called or what the two leaders discussed.
A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.
The ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of U.S. tariffs on investment and the operation of foreign firms.
"The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the U.S. that you cannot find anywhere else and so would shut down your supply chain," American Chamber of Commerce in China President Michael Hart said.
PHARMA, CHIP EXEMPTIONS
Hart added some member pharmaceutical companies had reported being able to import drugs to China without tariffs. He believed the exemptions were drug-specific, not industry-wide.
The chief executive of French aircraft engine maker Safran (SAF.PA), opens new tab said on Friday it had been informed the previous night, opens new tab that China had granted tariff exemptions on "a certain number of aerospace equipment parts" including engines and landing gear.
A source at a memory chip design firm said the China Semiconductor Industry Association (CSIA) informed them earlier this week of waivers on imports of eight types of microchips.
Analogue chips are exempted but not memory chips, the source, who asked not to be named due to the sensitivity of the issue, told Reuters. This would likely impact Micron Technology (MU.O), the largest U.S. memory chip producer.
The impact of China's tariffs on U.S.-made chips was bigger than initially thought, prompting the adjustments, the source added.
A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among some businesses and trade groups on Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines as well as eight types of chips.
Huatai Securities said the list corresponded to $45 billion worth of imports to China last year.
LASTING FIGHT
While Washington has said the trade stand-off with China is economically untenable and already offered tariff exemptions to some electronic goods, China has repeatedly said it is willing to fight to the end unless the U.S. lifts its 145% tariffs.
But China's economy headed into the trade war with rising unemployment, deflationary pressures and heightened concern that a mounting backlog of unsold exports could drive domestic prices even lower.
While China ran a trillion-dollar trade surplus in 2024, it also relies on the United States for key imports, including the petrochemical ethane, which is needed to make plastics, and some drugs.
Major ethane processors have already sought tariff waivers from Beijing because the U.S. is the only supplier.
Beijing's exemptions, which business groups hope would extend to dozens of industries, pushed the U.S. dollar up slightly and lifted equity markets in Hong Kong and Japan.
But, he cautioned: "It's clear that neither the U.S. nor China want to be the first in reaching out for a deal."
China has not yet communicated publicly on any exemptions.
U.S. President Donald Trump told TIME magazine in an interview that U.S.-China talks were taking place on tariffs, and that Chinese President Xi Jinping had called him. Beijing has so far disputed the U.S. characterization of talks.
"He's called. And I don't think that's a sign of weakness on his behalf," Trump told TIME. He did not say when Xi called or what the two leaders discussed.
A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.
The ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of U.S. tariffs on investment and the operation of foreign firms.
"The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the U.S. that you cannot find anywhere else and so would shut down your supply chain," American Chamber of Commerce in China President Michael Hart said.
PHARMA, CHIP EXEMPTIONS
Hart added some member pharmaceutical companies had reported being able to import drugs to China without tariffs. He believed the exemptions were drug-specific, not industry-wide.
The chief executive of French aircraft engine maker Safran (SAF.PA), opens new tab said on Friday it had been informed the previous night, opens new tab that China had granted tariff exemptions on "a certain number of aerospace equipment parts" including engines and landing gear.
A source at a memory chip design firm said the China Semiconductor Industry Association (CSIA) informed them earlier this week of waivers on imports of eight types of microchips.
Analogue chips are exempted but not memory chips, the source, who asked not to be named due to the sensitivity of the issue, told Reuters. This would likely impact Micron Technology (MU.O), the largest U.S. memory chip producer.
The impact of China's tariffs on U.S.-made chips was bigger than initially thought, prompting the adjustments, the source added.
A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among some businesses and trade groups on Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines as well as eight types of chips.
Huatai Securities said the list corresponded to $45 billion worth of imports to China last year.
LASTING FIGHT
While Washington has said the trade stand-off with China is economically untenable and already offered tariff exemptions to some electronic goods, China has repeatedly said it is willing to fight to the end unless the U.S. lifts its 145% tariffs.
But China's economy headed into the trade war with rising unemployment, deflationary pressures and heightened concern that a mounting backlog of unsold exports could drive domestic prices even lower.
While China ran a trillion-dollar trade surplus in 2024, it also relies on the United States for key imports, including the petrochemical ethane, which is needed to make plastics, and some drugs.
Major ethane processors have already sought tariff waivers from Beijing because the U.S. is the only supplier.
This post has been edited by JohnL77: Apr 30 2025, 12:28 PM
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