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Fortune
Fortune
Jordan Blum

As China restricts rare earths, Trump targets ethane in plastics manufacturing blow

Trump and Xi greet a crowd of cheering people (Credit: Qilai Shen / Bloomberg—Getty Images)

The Trump administration plans to reject U.S. ethane exports to China that are heavily relied upon for plastics manufacturing in an apparent escalation of the temporary trade war truce between the world’s biggest superpowers.

The move may come in response to China placing restrictions on the exports of certain rare earth metals to the U.S. that are required for the tech and auto industries as the two countries continue to accuse each other of violating the trade truce.

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