On Tuesday, China lifted a 125 percent tariff on ethane imports from the United States, marking a significant concession in the ongoing trade conflict, as reported by Reuters.

Initially, this tariff was implemented in response to President Donald Trump’s tariff policies, which primarily targeted China.

While Trump announced a 90-day suspension of most tariffs on other trading partners, substituting them with a standard 10 percent duty to facilitate negotiations, the tariffs on Chinese products not only persisted but were raised to 125 percent.

The Trump Administration views China’s decision to eliminate the ethane tariff as a positive development, indicating that the Chinese government may soon be willing to engage in negotiations.

According to the U.S. Energy Information Administration, as of this report, China accounts for nearly 50% of the ethane exports from the United States annually. Prominent Chinese firms that depend on these exports include Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group. The primary exporters from the U.S. are Enterprise Products Partners and Energy Transfer, as reported by Fox Business.

Ethane has been added to an expanding list of exports for which China has provided tariff exemptions amid the ongoing trade conflict with Washington D.C. Recently, the Chinese government also granted exemptions for pharmaceuticals, microchips, and aircraft engines, while urging Chinese companies to pinpoint essential exports that should remain exempt from tariffs. In response to the announcement of the latest exemption, U.S.