Reuters reported on April 30 that China has compiled a list of U.S. products exempt from the 125% tariff and has quietly communicated this to companies. According to sources, authorities have decided to exempt U.S. ethane (ethene) from the 125% tariff, following a similar exemption for U.S. semiconductors.
Although the ethane tariff exemption has not yet been officially announced, it is expected to ease pressure on Chinese companies that import U.S. ethane for petrochemical production.
According to the U.S. Energy Information Administration (EIA), China imports half of all U.S. ethane exports. Last year, China imported a record high of 492,000 barrels per day. U.S. companies are virtually the sole suppliers to major Chinese ethane processing firms.
Additionally, sources say that Chinese authorities have drawn up a so-called "white list" of major U.S. imports eligible for the 125% tariff exemption and have been informally notifying companies of its contents.
A representative of a pharmaceutical company that sells U.S. medicines in China stated that the Shanghai Pudong local government has privately contacted each company to inform them of the existence of a product classification list for tariff exemptions. Another source said that some companies have been asked to discreetly contact authorities to confirm whether their imported products are eligible for exemption.
Previously, foreign media reported that Chinese authorities had decided to exempt U.S. semiconductors and certain pharmaceuticals from tariffs. At that time, although there was no official announcement, it was reported that relevant companies were quietly notified at customs clearance sites.
While the specific items on the white list have not been confirmed, it appears that the range of products included is expanding.
Sources said that China is conducting surveys of companies to assess the impact of the tariff war. Authorities are identifying key products in need of tariff exemption and, based on these findings, are informally notifying relevant companies of the exemption measures.
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