China extends tariffs on propyl alcohol imported from the United States until 2031

China will maintain for another five years, until November 2031, the tariffs imposed on imports of propyl alcohol from the United States, also known as n-propanol. The decision was announced Thursday by Beijing’s Ministry of Commerce and covers duties ranging from 34.2% to 37.7%.

The tariffs were introduced at the end of 2020, after Chinese authorities investigated whether US producers benefited from subsidies and whether imports were causing harm to China’s domestic industry. The investigation was launched at the request of Chinese producers in the sector.

Propyl alcohol is used as a solvent for paints used in food packaging and as a pharmaceutical precursor for certain antibiotics and other medicines. The substance is also used in the paint industry, cosmetics, disinfectants, lubricants and brake fluid.

An important derivative, n-propyl acetate, is used in electrolytes for lithium batteries intended for electric vehicles. By extending the duties, Beijing is protecting its domestic industry in an area relevant to chemical production and the transition to electric mobility.

The decision comes amid the trade war between China and the United States, which began in 2018. In September, the two countries agreed on a framework for reciprocal tariff reductions on goods worth approximately $30 billion for each side and announced the formation of a joint committee tasked with identifying negotiated solutions.