Chinese petrochemical businesses may dramatically reduce output and shut down for maintenance in the coming weeks as Beijing’s retaliatory tariffs on US imports drive up expenses.
. The Chinese industry mainly relies on US liquefied natural gas (LNG) and propane to produce propylene. Experts believe that the tariffs will push Chinese propane dehydrogenation plant owners to slash average operating costs by about 15%, reducing propane demand by at least 500,000 tonnes per month. On April 9, 2025, US President Donald Trump raised taxes on Chinese goods by 125%, prompting Beijing to apply retaliatory tariffs of 84% on imports that are still in effect today. China purchased a record 17.3 million tonnes of US propane in 2024, accounting for 60% of its total imports. Last year, the country acquired USD11 billion in liquefied petroleum gas (LPG).
Earlier, German chemical companies urged the EU not to become emotional in response to the US’s new hefty customs levies.