In the aromatic hydrocarbon industry chain, there is almost no direct trade of aromatic products between mainland China and the United States. However, the U.S. imports a significant portion of its aromatic products from Asia, with Asian suppliers accounting for 40–55% of U.S. imports of benzene, paraxylene (PX), toluene, and mixed xylenes. Key impacts are analyzed below:
Benzene
China is heavily import-dependent for benzene, with South Korea as its primary supplier. Both China and the U.S. are net benzene consumers, with no direct trade between them, minimizing the direct impact of tariffs on China’s benzene market. In 2024, South Korean supplies accounted for 46% of U.S. benzene imports. According to South Korean customs data, South Korea exported over 600,000 metric tons of benzene to the U.S. in 2024. However, since Q4 2023, the arbitrage window between South Korea and the U.S. closed, redirecting South Korean benzene flows to China—Asia’s largest benzene consumer and a high-price market—significantly increasing China’s import pressure. If U.S. tariffs are imposed without exemptions for petroleum-based benzene, global supplies originally destined for the U.S. may shift to China, sustaining high import volumes. Downstream, exports of benzene-derived products (e.g., home appliances, textiles) may face negative feedback due to rising tariffs.
Toluene
China’s toluene exports have grown steadily in recent years, primarily targeting Southeast Asia and India, with negligible direct trade with the U.S. However, the U.S. imports substantial toluene volumes from Asia, including 230,000 metric tons from South Korea in 2024 (57% of total U.S. toluene imports). U.S. tariffs could disrupt South Korea’s toluene exports to the U.S., exacerbating oversupply in Asia and intensifying competition in markets like Southeast Asia and India, potentially squeezing China’s export share.
Xylenes
China remains a net importer of mixed xylenes, with no direct trade with the U.S. The U.S. imports large volumes of xylenes, mainly from South Korea (57% of U.S. imports under HS code 27073000). However, this product is included in the U.S. tariff exemption list, minimizing the impact on Asia-U.S. arbitrage activities.
Styrene
The U.S. is a global styrene exporter, primarily supplying Mexico, South America, and Europe, with minimal imports (210,000 metric tons in 2024, nearly all from Canada). China’s styrene market is oversupplied, and anti-dumping policies have long blocked U.S.-China styrene trade. However, the U.S. plans to impose a 25% tariff on South Korean benzene, which may further increase Asian styrene supply. Meanwhile, China’s styrene-dependent home appliance exports (e.g., air conditioners, refrigerators) face soaring U.S. tariffs (up to ~80%), severely impacting this sector. Thus, U.S. tariffs will mainly affect China’s styrene industry through rising costs and weakened downstream demand.
Paraxylene (PX)
China exports almost no PX and relies heavily on imports from South Korea, Japan, and Southeast Asia, with no direct U.S. trade. In 2024, South Korea supplied 22.5% of U.S. PX imports (300,000 metric tons, 6% of South Korea’s total exports). U.S. tariffs may reduce South Korean PX flows to the U.S., but even if redirected to China, the volume would have limited impact. Overall, U.S.-China tariffs will minimally affect PX supply but could indirectly pressure downstream textile and apparel exports.
The U.S. “reciprocal tariffs” will primarily reshape global trade flows of aromatic hydrocarbons rather than directly disrupting China-U.S. trade. Key risks include oversupply in Asian markets, intensified competition for export destinations, and downstream pressure from elevated tariffs on finished goods (e.g., appliances, textiles). China’s aromatic industry must navigate redirected supply chains and adapt to shifting global demand patterns.
Post time: Apr-17-2025