June 4, 2025 – Fortune
As China restricts rare earths, Trump targets ethane in plastics manufacturing blow
By: Jordan Blum
The Trump administration plans to reject U.S. ethane exports to China that are heavily relied upon for plastics manufacturing in an apparent escalation of the temporary trade war truce between the world’s biggest superpowers.
Read the full article here: https://fortune.com/2025/06/04/china-restricts-rare-earths-trump-targets-ethane-plastics/
China is by far the largest importer of American ethane—the most common building block for petrochemicals and plastics worldwide. The U.S. is the only major exporter of ethane, making China entirely dependent on America’s exports. Roughly half of all U.S. ethane exports go to China, and the cargoes are not easily redirected to other nations.
“The [Commerce] decision has the potential to ruin the U.S. ethane market and disrupt global flows,” said Kristen Holmquist, managing director of analytics for RBN Energy, in an analyst note…
