Citing two familiar sources with the issue, Reuters reported on Tuesday that China decided to give up 125% tariff on ethane imports from the United States imposed earlier this month.
“This decision will facilitate the pressure on Chinese companies which import American ethane for petrochemical production and provide an outlet for natural gas fluid, a by-product of American shale gas production,” noted Reuters and added that China buys almost half of US exports in ethane, according to US Energy Information Administration.
Market reaction
This title has not triggered a notable reaction on the market. During the editorial staff, the US dollar index increased 0.2% during the day to 99.16.
American-Chinese trade faq
In general, a trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This implies the creation of commercial barriers, such as prices, which cause counter-barriers, an increase in import costs, and therefore the cost of living.
An economic conflict between the United States (United States) and China began in early 2018 when President Donald Trump set trade obstacles on China, claiming unfair commercial practices and an intellectual property flight from the Asian giant. China has taken reprisal measures, imposing prices on several American products, such as cars and soybeans. Tensions intensified until the two countries signed the US-China phase trade agreement in January 2020. The agreement required structural reforms and other changes to the economic and commercial regime of China and pretended to restore stability and confidence between the two nations. However, the coronavirus pandemic has focused on the conflict. However, it should be mentioned that President Joe Biden, who took office after Trump, maintained prices in place and even added additional samples.
Donald Trump's return to the White House as 47th American president sparked a new wave of tensions between the two countries. During the 2024 electoral campaign, Trump has committed to imposing prices of 60% on China once he became his functions, which he did on January 20, 2025. With Trump back, the American-Chinese trade war is supposed to resume the untrings in the global supply chains, resulting in a reduction in investment, in particular investments, and food consumption.
