World
China Backs Down: Drops 125% Tariff on Major U.S. Exports After White House Calls Beijing’s Strategy ‘Unsustainable’
By Jake Beardslee · April 30, 2025
China Drops 125% Tariff on U.S. Ethane
A major shift in the ongoing U.S.-China trade conflict unfolded Tuesday as Beijing waived a steep 125% tariff on ethane imports from the United States, according to Reuters. The move follows predictions from the White House that China's retaliatory duties were economically unsustainable. Kaboompics.com / Pexels
Ethane Is a Big U.S. Export—Especially to China
Ethane, a key component in plastics and petrochemical manufacturing, represents a significant American export—nearly half of which typically goes to China, according to the U.S. Energy Information Administration. Ben Mills / Wikimedia
Tariff Was a Response to Trump’s Trade Moves
The now-revoked tariff had been implemented as part of China’s response to President Donald Trump’s sweeping April tariff initiative, dubbed the “Liberation Day” campaign. The White House / Wikimedia
Major Chemical Companies Are Involved on Both Sides
Chinese companies such as Satellite Chemical, Sinopec, and Wanhua Chemical Group are among the primary buyers of U.S. ethane. Meanwhile, major U.S. exporters include Enterprise Products Partners and Energy Transfer. WhisperToMe / Wikimedia
China Is Also Lifting Tariffs on Other Key Products
The exemption on ethane follows other recent waivers issued by China on high-demand items like pharmaceuticals, aircraft engines, and microchips. These moves suggest Beijing is recalibrating its strategy in response to economic pressure and supply chain dependencies. Pixabay / Pexels
U.S. Treasury Chief Says China Risks Massive Job Losses
U.S. Treasury Secretary Scott Bessent, speaking at the White House Tuesday, said, “I think that over time we will see that the Chinese tariffs are unsustainable for China.” He warned that if China maintained its tariffs, it could lose “10 million jobs very quickly,” adding that even modest drops in tariff levels might still cost “5 million jobs.” THOMAS CORDY/THE PALM BEACH POST / USA TODAY NETWORK via Imagn Images
U.S. Points to Trade Imbalance as Leverage
“So remember that we are the deficit country,” Bessent added. “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They're unsustainable for them.” Senator Tim Scott / Wikimedia
Trump’s April Tariff Plan Raised the Stakes
The administration’s tariff plan, announced April 2, initially proposed sweeping duties against several countries. While the U.S. scaled back some reciprocal tariffs on other nations to 10% for 90 days, it moved forward with a hike on Chinese imports to 145% on April 9. Tabrez Syed / Unsplash
China Starts Pulling Back on Its Own Tariffs
In retaliation, China raised its tariffs on U.S. products to 125%—a move it has now begun to reverse under growing economic strain. Arthur Wang / Unsplash