The diversion of U.S.-origin petroleum gas shipments away from China underscores just how deeply the escalating U.S.-China trade war is disrupting global energy and petrochemical supply chains.

In the past week alone, at least four propane cargoes initially bound for Chinese ports have rerouted to alternative destinations including Japan and South Korea. These are not isolated movements: the shift is part of a broader reshuffling of flows triggered by steep U.S. tariffs on China and reciprocal Chinese import duties. One ethane cargo — a key raw material for plastics — has reportedly been cancelled altogether.

The global corporate earnings season has revealed a stark and widening fault line caused by President Donald Trump’s sweeping trade war. Businesses across a broad range of industries — from consumer goods to airlines, automakers to pharmaceutical companies — are warning of rising costs, growing operational uncertainty, and faltering consumer sentiment as tariffs and trade tensions ripple through the global economy.

Procter & Gamble, PepsiCo, Thermo Fisher Scientific, and American Airlines were among the major firms on Thursday to either cut profit forecasts or withdraw financial guidance entirely. Their earnings reports paint a clear picture: Trump’s tariffs are upending supply chains and sowing strategic confusion in boardrooms.

China’s move to quietly exempt select U.S. imports from its steep 125% retaliatory tariffs marks a significant turning point in the escalating trade war, offering the first concrete sign that Beijing is willing to consider de-escalation — but only on its own terms.

China’s Ministry of Commerce has begun soliciting lists of critical goods from companies — including U.S. and European multinationals — that are currently subject to tariffs but lack viable alternative suppliers. While no formal announcement has been made, several firms report that exemptions are already being granted in sectors such as pharmaceuticals and aerospace.