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U.S. Ethane Exports Face Licensing Hurdles After China Lifts Tariffs

Summary by Oil Price
China has waived a short-lived 125% tariff on U.S. ethane imports, but American shipments to China could be hindered by a U.S. requirement of export licenses. Ethane, a natural gas liquid primarily extracted from raw natural gas during processing, is mainly used as a feedstock for ethylene production, one of the most important building blocks in the petrochemical industry. China has waived a 125% tariff on U.S. ethane imports it had levied in ea…

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The U.S. Commerce Department is requiring U.S. exporters to apply for a license from the Commerce Department before exporting ethane to China, a move that could disrupt the flow of petrochemical raw material ethane to China, according to trade sources and shipping data. The U.S. Trade Representative said on Friday (May 30) that China had violated its commitment to resume exports of key minerals.

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quatrostrategies.ca broke the news in on Friday, May 30, 2025.
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