China just lifted a massive 125% tariff on U.S. ethane, walking back one of its key retaliatory trade moves. The quiet reversal signals that Trump’s tariff strategy may be hitting harder than Beijing expected.
Key Facts:
- China removed a 125% tariff on American ethane imports, imposed earlier this month.
- China is the largest buyer of U.S. ethane, consuming nearly half of total exports.
- Major Chinese chemical companies depend on U.S. ethane to operate.
- China has also recently rolled back tariffs on semiconductors, pharmaceuticals, and aircraft engines.
- Treasury Secretary Scott Bessent warned Chinese tariffs could lead to up to 10 million lost jobs.
The Rest of The Story:
The Chinese government has reversed its short-lived 125% tariff on U.S. ethane, a key resource in its manufacturing sector.
Ethane is crucial for Chinese chemical giants like SP Chemicals and Sinopec, who rely on regular shipments from American suppliers.
The tariff was originally imposed as retaliation for Trump’s latest trade action, but China couldn’t sustain it.
Energy data shows China consumes about half of America’s ethane exports.
Facing pressure from both internal markets and U.S. tariffs, China began dialing back additional trade restrictions, including duties on semiconductors and medical goods.
The reversal aligns with warnings from Treasury Secretary Scott Bessent, who said China risks millions of job losses if the trade barriers continue.
With a major trade imbalance—China exports nearly five times as much to the U.S. as it imports—Beijing faces a deeper cost if it escalates further.
Treasury Secretary Scott Bessent warns China that the tariffs are unsustainable "for them," and if rates remain, China could lose 10 million jobs.
Reporter: “The Chinese continue to say that the US and Chinese are not engaged in any consultation or negotiation on tariffs… Can… pic.twitter.com/IN86u6VCz0
— RedWave Press (@RedWave_Press) April 29, 2025
Commentary:
Mainstream outlets may ignore it, but the facts tell a different story: Trump’s tough tariff strategy is working.
This quiet concession from China isn’t a fluke—it’s the latest in a string of economic retreats that show Beijing is feeling the pressure.
The media has spent years predicting economic catastrophe over tariffs.
They claimed American farmers would suffer, businesses would collapse, and markets would plunge.
But while the coverage painted Trump’s policies as reckless, reality has proven otherwise.
The Chinese economy—not America’s—is the one blinking.
China depends deeply on the U.S. consumer market.
The data is clear: we buy far more from them than they buy from us.
That imbalance gives the U.S. leverage—leverage Trump has wielded without apology.
Every rollback China makes is a quiet admission that the tariffs are biting.
Of course, China will never admit this publicly.
Saving face is too important.
That’s why these concessions happen under the radar—tariffs disappear, deals are made, but the media downplays or ignores them.
This lets critics cling to the illusion that the strategy is failing.
But China’s economic reality doesn’t care about narrative.
Its manufacturing base can’t function without U.S. materials, and Xi Jinping knows it.
As Kevin O’Leary rightly pointed out, leaders in China may not face voters, but they still face instability if people lose jobs.
Look, I don’t care what China says—they’re talking, because they have no choice. We’re the largest economy on Earth. We finally have leverage, and I want this administration to solve the big problem: unfair access, no compliance, and IP theft. I’m done with excuses.
I just want… pic.twitter.com/NdUc6b9BOT
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) April 24, 2025
Trump’s approach was always about asserting strength.
And strength is what gets results.
Biden’s years of appeasement got nothing.
Trump’s tariffs are delivering—one backpedal at a time.
The Bottom Line:
China quietly walking back its 125% ethane tariff is further proof that it can’t win a trade war with the United States.
Trump’s tariffs are forcing China to bend, not the other way around.
While critics push fear and fiction, the facts show China needs America far more than America needs China—and Trump’s strategy is making that undeniable.
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