"China on Tuesday waived a 125 percent tariff on ethane imports from the United States in a major trade war concession, according to a report from Reuters.
China had initially imposed the tariff as part of its retaliation against President Donald Trump’s tariff strategy, which has largely focused on China. While Trump issued a 90-day pause on most tariffs levied against other trading partners and replaced them with baseline 10 percent duties to allow time for negotiations, tariffs on Chinese goods not only remained, but increased to 125 percent.
The Trump Administration believes Beijing’s decision to wave the ethane tariff is a step in the right direction and suggests that China’s communist government will soon come to the negotiating table.
Ethane joins a growing list of exports China has granted tariff exemptions for as the trade war with Washington D.C. plays out. Just last week, the Chinese government granted exemptions for pharmaceuticals, microchips and aircraft engines, while Chinese firms have been asked to identify critical exports that should remain tariff-free.
When reacting to news of the latest exemption, U.S. Treasury Secretary Scott Bessent hailed it as an indicator of success for the president’s tariff strategy and insisted that China will soon come to the negotiating table. While speaking from the White House on Tuesday morning, Bessent emphasized that an ongoing trade war will cost millions of Chinese jobs if the CCP does not change course......"