Unofficial list sparks speculation: China may add US PE to tariff exemption talks

China may be considering extending tariff exemptions to include US polyethylene (PE) imports, according to industry sources and an unofficial document circulating in Chinese markets. While exemptions for US ethane and LPG had already been under discussion in recent weeks, the possible inclusion of PE has triggered fresh speculation across the petrochemical sector.

The unofficial list, which reportedly contains 131 line items under review, spans a wide range of products from medical equipment to key raw materials such as ethane. Sources say several PE grades appear on the list, although the document’s authenticity has not been officially confirmed.

Some market participants believe the exemption could be limited to LLDPE, while others suggest a broader range of PE grades could be covered, citing HS codes seen in the circulated list. HS codes related to LDPE (39011000), HDPE (39012000), LLDPE (39014020), and other ethylene polymers (39019090) have been mentioned among the items under review.

Background discussions around exemptions for ethane and LPG had already been gaining momentum earlier this month, as Chinese producers reliant on US feedstocks sought relief from the newly imposed 125% tariffs. Authorities were reportedly asking domestic companies in vulnerable sectors to submit customs codes for US-sourced goods they deemed critical.

Earlier this month, Chinese petrochemical producers reportedly submitted requests to exempt critical feedstocks such as US-sourced ethane and LPG from the 125% retaliatory tariffs, citing the heavy reliance of new ethane-fed and PDH units on American supply.

Still, despite the growing market chatter, industry players caution that the exemption list remains highly speculative. No official announcement has been made, and there is no guarantee that discussions will lead to concrete policy changes.

If exemptions on petrochemical feedstocks and polymers are granted, it would signal a tentative effort by Beijing to shield its domestic industries from the fallout of the escalating trade war with Washington. Such a move would mirror earlier US actions, where certain Chinese imports were also carved out from newly imposed tariffs.