Trump’s Trade War Threatens One of America’s Top Energy Exports
April 18, 2025
By Ryan Dezember
President Trump’s tariffs are disrupting a major U.S. export: propane sales to China. In response to U.S. tariffs totaling 145%, China imposed a 125% tax on American imports, including propane, making it too expensive for Chinese factories that turn it into plastic.
Propane, once a minor export, has become a top U.S. product sold to China—used mostly in propylene production for items like car parts, food wrap, and textiles. China previously accounted for 18% of U.S. propane exports, but tariffs have driven prices down 15% and left the market unstable.
Despite cheaper prices, domestic use is unlikely to rise significantly. “There’s not a lot of price sensitivity,” said Kristen Holmquist of RBN Energy. “It’s not like if propane prices go down by 40% that all of a sudden people are going to want to heat their homes more.”
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With Chinese demand still growing, Holmquist noted that future PDH plants will require as much propane as China currently imports from the U.S.
Meanwhile, American energy firms like Enterprise and Oneok are investing billions in expanding export infrastructure, backed by long-term contracts that make the projects financially stable.
