The National Retail Federation’s CEO, Matt Shay, discussed concerns regarding tariff tensions, highlighting the potential risks to small businesses. On Tuesday, China removed a 125% tariff on U.S. ethane imports, as reported by Reuters. This tariff had initially been imposed in response to President Donald Trump’s tariff initiatives. The U.S. Energy Information Administration notes that China purchases about half of America’s ethane exports annually.
Chinese companies, including Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group, depend on U.S. ethane, with Enterprise Products Partners and Energy Transfer as key U.S. exporters. Ethane now joins a list of products for which China has waived tariffs amid the ongoing trade tensions with the United States.
Recently, China also granted tariff exemptions for pharmaceuticals, microchips, and aircraft engines, requesting that companies identify critical goods needing exemption from tariffs.
U.S. Treasury Secretary Scott Bessent indicated that Trump’s tariffs significantly pressured Beijing, potentially threatening millions of Chinese jobs. Speaking at the White House, Bessent expressed that the sustainability of Chinese tariffs was questionable, with projections of significant job losses in China if the tariffs continued.
President Trump had announced widespread tariffs on multiple countries, condemning various trade practices. Originally, his administration planned to increase tariffs on Chinese goods to 145% and adjust them on other countries after a 90-day period. In reaction, China raised its tariffs on U.S. goods to 125%.
Bessent also mentioned the possibility of a trade agreement with India and other Asian nations. He noted that Vice President Vance and India’s Prime Minister Narendra Modi made progress during a recent meeting, suggesting impending announcements regarding trade with India.
The information was further supplemented by Reuters contributions.
