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• Washington DC airport suspends flights during Trump's Army Parade

  Washington's Reagan National Airport said on Thursday that the Federal Aviation Administration would likely suspend flights during U.S. president Donald Trump's Army Anniversary Parade on June 14. The Federal Aviation Administration will suspend airline operations in DCA to accommodate aircraft flyovers, followed by fireworks displays, according to a notice posted on the airport's website. Washington Post reported that the airport, which is located less than 2 miles from National Mall, may be closed for up to 4 hours. The celebration of the U.S. Army 250th Anniversary will coincide with President Obama's 79th Birthday. In January, sixty-seven people died when an American Airlines regional plane and a helicopter collided. They crashed into the Potomac River. This was the worst U.S. aviation disaster in over 20 years.

• Delta warns that tariffs may force the airline to stop purchasing foreign-made aircraft

  Delta Air Lines has warned that tariffs imposed by the Trump administration on imported planes and parts may force it to stop purchasing foreign-made aircraft and cancel flights that serve 10 million passengers a year. The Atlanta-based carrier's comments were made in an unreported filing by the U.S. Commerce Department late Tuesday, in response to an investigation into national security that was recently launched and could result in additional tariffs. Delta said that if potential tariffs are not adjusted in time, they could threaten the U.S. aircraft manufacturing industry and hinder its ability to buy aircraft made domestically or overseas. The airline stated that it will take delivery of 47 Airbus aircraft in 2023-2024, which are manufactured in Canada and France. Delta stated that if tariffs forced Delta to cancel these deliveries, it would have prevented the airline from operating flights for 10 million passengers a year. It said that a "similar impact" could be expected in the future if new tariffs for national security are introduced. Delta Airlines said that it would be forced to cancel contracts already in place and re-evaluate contracts currently under negotiation. After President Donald Trump announced the new duties in April, nearly all planes and aircraft parts imported by the industry will be subject to 10% tariffs. A new national security duty would increase that. Delta announced in April that it would defer orders for aircraft that were subject to tariffs. It was not clear what tariff rate would cause it to cancel its orders. The airlines and manufacturers argue that the sector should not be subject to tariffs. The Commerce Department launched an investigation last month called Section 232 to examine the risks imported goods pose to U.S. security. This could be used to justify higher tariffs for imported parts, engines and planes. Howard Lutnick, Commerce Secretary, said on Wednesday that the department will complete its review before the end of the month and then discuss the results with Trump. Aerospace and airline industry has said that new tariffs for imported commercial aircraft, engines and parts may put the safety of air travel and supply chains at risk or have other unintended effects. Airlines and manufacturers are lobbying Trump for a return to the tariff-free regime of the Civil Aircraft Agreement from 1979, where the U.S. sector had a $75 billion trade surplus each year. In separate comments, the U.S. Chamber of Commerce urged Trump to refrain from imposing additional tariffs on aerospace products. They said that they would "weaken U.S. manufacturers." Last year, 135 millions U.S. airline travelers traveled on regional aircraft. The chamber stated that "while the United States does not have domestic assembly of regional planes, imported regional aircraft all feature significant amounts of U.S. Content," Tariffs on this production are not justified by national security or commercial interests. Business Roundtable, an association of U.S. CEOs who are major players in the aerospace industry, warned that tariffs would lead to retaliatory actions, "which could significantly disrupt the U.S. Aerospace Industry, which is heavily dependent on foreign clients, and ultimately undermine the competitiveness U.S. products." (Reporting and editing by Cynthia Osterdy; Cynthia Shepardson).

• The container shipping rate surge fueled by tariffs is peaking

  Financial analysts and maritime consultants say that container shipping rates continue to rise this week. This is fueled by a temporary tariff pause, which has been imposed between the U.S. More than 80% percent of all goods are transported by ocean vessels. Container vessels like those operated by MSC and Maersk transport toys, apparel and parts from Walmart to Ford Motor Co. factories. Drewry, a maritime consultancy, announced on Thursday that its World Container Index had risen 41% in a week to $3.527 for a 40-foot container. The index has risen 70% in the past four weeks due to the U.S. China trade truce of May 12, which reduced China tariffs from 145% to 30%, which had collapsed trade between two of the world's largest economies. Drewry reported that freight rates from Shanghai, the home of the busiest U.S. port, to Los Angeles have risen by 57% in the last week to $5,876 a FEU and 117% over the past eight days. This rate is 2% lower than a year earlier and far below the rates of $10,000 or more seen at the peak of the COVID crisis. In a note to clients, Jefferies shipping expert Omar Nokta stated that the Shanghai Containerized Index, which tracks spot prices from the busiest container ports in Shanghai, was on track to post another gain this coming week. Nokta stated that the spot rate for the SCFI route from the U.S. West Coast to Canada was closer to $6,000. He said that the rates for the second half are more likely to be at their peak, as they are in the range of $5,000 to $5500 per FEU. Drewry's Container Forecaster predicts that demand will weaken in the second half this year. This would lead to rates falling again. Drewry explained that the volatility and timing of the rate changes would depend on the legal challenges against Trump's tariffs, and the capacity changes resulting from the introduction of port charges on Chinese ships. (Reporting and editing by Nick Zieminski in Los Angeles)

• Plus, the autonomous truck startup, to go public with SPAC in a $1.2 billion deal

  The companies announced on Thursday that the self-driving vehicle startup Plus Automation would go public in the United States via a $1.2billion merger with Churchill Capital Corp IX. Plus will receive $300 million from the merger, which is backed by Wall Street veteran Michael Klein. This money will be used to launch its autonomous trucks commercially in 2027. In recent months, the commercialization of self-driving vehicles, which is widely viewed as the future in transportation, has accelerated as companies move from making bold promises to making cautious progress. In the U.S. truck operators, who are responsible for most of the freight movement in the country, increasingly look to automate their operations to reduce logistics and transportation costs, amid driver shortages, and increased demand for faster deliveries. The Trump administration is expected to ease regulations for self-driving vehicles, including removing certain vehicles from safety requirements. It will also relax rules on reporting safety incidents. California announced in April that it would allow the testing of self-driving trucks, large vehicles and other heavy-duty vehicles on public roads. Plus tried to go public in a blank-check deal worth $3.3 billion at the height SPAC fever, but it was subsequently canceled. SPACs are a quick way to list. "IPOs can be expensive and many companies don't wish to incur the costs of pulling the IPO at the last minute," said Yuriy Schterk, Clearwater Analytics' global head of alternative investments. Plus, which counts Hyundai among its customers, is currently testing public roads in Texas and Sweden. More customer fleet trials are scheduled for the fall of 2025. Uber-backed Aurora Innovation is also testing self-driving vehicles in Texas. The deal should close by the end of 2025. Reporting by Arasu Kanagi Basil in Bengaluru and Ateev Bhhandari; editing by Vijay Kishore, Mohammed Safi Shamsi

• Senators in the US are urged by drillers and unions to maintain hydrogen credit

  A coalition of more than 250 businesses and labor organizations urged U.S. Republican Senators on Thursday to protect a credit in the tax and spending bill for President Donald Trump that would benefit the hydrogen fuel industry. The American Petroleum Institute and DuPont, an oil and gas lobbying organization, as well as a local chapter of the International Brotherhood of Electrical Workers and the Senate Majority Leader John Thune, asked them to extend the deadline for construction to December 31, 2020, so that hydrogen projects could receive a tax credit. The Senate is currently debating the Senate's version of the bill, after the House of Representatives ended the so-called "45V credit" for any projects that begin construction after 2025. In a June 5 letter to senators, the groups stated that "If this course is adopted by Senate, it would drive tens billions of dollars of planned private sector investment out of the United States, and into other countries." If we don't act now to preserve 45V, then we are ceding our future to China. The letter was also signed by the Business Council for Sustainable Energy, the Nuclear Hydrogen Initiative and the Business Council for Sustainable Energy. The House Republicans have reduced the tax credits that were included in the Inflation Reduction Act - the landmark climate law signed by Joe Biden as a Democrat. Hydrogen producers received tax credits under the IRA for projects that started construction before 2033. Analysts say that clean hydrogen, which is hydrogen produced using non-fossil fuels, or natural gases paired with technologies to capture and store carbon emissions underground, are needed to decarbonize the heavy industry and certain vehicles. In the letter, lawmakers said that clarity would lead to tens and tens billions in private capital and boost manufacturing in the United States, as well as create jobs in technology, construction, and operations.

• Trump says he will not immediately bring peace to Ukraine, but Russia has responded to the attacks.

  The Kremlin announced on Thursday that Russia would respond to Ukraine’s latest attacks when and as its military deems appropriate. It accused Kyiv as a state terrorist, while U.S. president Donald Trump played down the prospects of an immediate peace between both countries. Ukraine has used drones against Russian heavy bombers at air bases in Siberia, the Far North and at the weekend. Russia accused Ukraine of blowing up railbridges in the South of the Country, killing seven people. Trump said he asked Vladimir Putin to refrain during their two-hour call on Wednesday, but he fully expected Moscow's response. It's not going to look pretty. I don't want it," Trump said, describing what he described as "great hatred" between Putin's and Ukraine's president Volodymyr Zelenskiy. The Kremlin has confirmed that Putin told Trump that Moscow would have to respond. Trump's second term began in January with a promise to end Russia's three year-old war in Ukraine. Instead, the deadliest conflict since World War Two in Europe is intensifying. On Thursday, he downplayed the prospects of any immediate peace. Trump said, "Sometimes two children fight like crazy. They hate each other. And they are fighting in a public park." "Sometimes it's better to let them fight and then separate them." U.S. SANCTIONS? Trump told reporters, before meeting German Chancellor Friedrich Merz at a press conference, that he believes "at some stage" peace will come between Russia and Ukraine. Trump replied: "We'll be very very, tough when I see that it doesn't stop." It could be both countries' responsibility to be honest. It takes two to make a tango. Merz said that he would be discussing with Trump how to increase the pressure on Russia. Dmitry Peskov of the Kremlin's press office, in his daily briefing to reporters, brought up comments made by Putin about the rail attacks a day before. "The President described the Kyiv Regime as a terrorist régime, because the regime's leaders consciously gave an order, a command, or the order to bomb a passenger rail. It is terrorism on a state-level. Peskov said, "This is a very important statement from the President." Russia has yet to provide evidence that Ukrainian leaders ordered rail attacks. Kyiv also hasn't acknowledged its responsibility. The war, which began in February 20,22 has escalated due to Russian air strikes as well as advances made on the battlefield. This has damaged the prospects of peace talks between the two parties that were resumed last month in Turkey.

• Boeing builds trust with airline bosses as they see improved jet quality

  Airlines are tentatively showing greater confidence in Boeing’s ability to produce jets of the highest quality, a move that could help the planemaker repair years of damage to its reputation. The annual airline summit in New Delhi, held this week, struck a more positive tone regarding Boeing's recovery after overlapping safety, industrial and regulatory crises. However, executives also stressed that Boeing had much work to do. Alaska Airlines CEO Ben Minicucci, who is based in Seattle, told the International Air Transport Association annual meeting that "we've seen an improvement quarter-to-quarter in safety and an improvement in our quality." "Are they there yet? There's still much work to be done. A door that was missing four bolts blew a new Alaska Airlines Boeing 737 MAX off at 16,000 feet in January of last year. The incident caused ripple effects throughout the industry, affecting suppliers, carriers, and passengers. At the IATA annual meeting, airline critics are often heard. Last year, IATA chief Willie Walsh urged Boeing to take lessons from mistakes that led to a crisis that began with two fatal crashes of MAX jets between 2018 and 2019. Tim Clark, President of Emirates, Boeing's largest customer, has recently been one of its most vocal critics. Clark's annual press conference at the summit was more positive this year. He spoke of getting "clearer" messages from Boeing's newly appointed leadership. He said he never met Ortberg’s predecessor Dave Calhoun, but praised the change in style. He said, "It was great to meet the CEO of Boeing." Clark, whose carrier has ordered 205 of the 777X, which is still not certified, in private, expressed growing confidence by Boeing. He said, "I haven't seen any of the cautious optimism I was referring to in the past few years." Ortberg, the new CEO, took over in August last year. He has promised to address safety and product quality issues and restore trust among regulators, employees and customers. Boeing customers reported that the measures have shown some results. Boeing has made improvements to the quality of its deliveries and is working hard to increase production. Peter Barrett, CEO at SMBC Aviation - a major Boeing customer and lessor - said that there is still a long way to go, but the story is improving. Airline Inspectors Boeing's recovery is not taken by many as a given. Alaska Airlines sent its own quality inspectors on Boeing's production line and ordered a quarterly audit. Alaska's Minicucci stated that Boeing had undertaken a "very meticulous, deliberate process" in order to reduce the out-of sequence work. This disruption in normal factory flow was blamed for part of the oversight. He said that Ortberg who moved to Seattle in order to be nearer the largest jet plants and Boeing Commercial Airplanes' CEO Stephanie Pope appointed last March regularly tour factories. Minicucci stated, "They are getting out, they are walking the floor and they feel what is going on." "I don't think it is the same as in the past." Other customers have noticed progress despite the brutal strike that halted Boeing's jet production last year. Scott Kirby, CEO of United Airlines, who was part of the revolt among U.S. carriers that led to Calhoun's departure after the Alaska incident last week, claimed Boeing had "turned a corner". Work Remains to Complete Recovery Few airline chiefs are still in denial about the magnitude of the turnaround required to restore Boeing factories' status. "When I went there last year... "I thought it was going nowhere with this rate," Clark said. He added that he would be returning this year to check out the progress. Boeing has declined to comment specifically on airline opinions. The airlines are not going to ease off their pressure on each other as they wait for the new jets just because the public is more positive. Boeing's production is slowly stabilising, according to several airline executives who attended the IATA event. Brad McMullen, Boeing's Senior Vice President for Commercial Sales, said: "We still have a lot to do but customers are very positive about our performance during the first five month of the year." The regulators will now be evaluating the higher production after Boeing reached a temporary limit of 38 MAX aircraft per month. It is also seeking certification for models such as the 777X. On Wednesday, the acting director of the Federal Aviation Administration stated that a higher output was not going to happen immediately. Clark, who was originally due to receive the upgraded 777X by 2020, had little hope that the jet would be delivered before the next IATA meeting in June of this year. Boeing says it will now be delivered in 2026. Clark stated that the important thing was that the aircraft would be certified according to the new Boeing's requirements: safety, new building methods and quality control. (Reporting and editing by Elaine Hardcastle; Reporting by Rajesh Kumar Singh)

• UK Market Exodus - Companies who have moved from London Listing

  Wise, a British money transfer company, became the latest UK-listed firm to announce its intention to move to the U.S. Due to Brexit and investor resistance, a growing number of companies are rethinking or changing their plans to list on the London Stock Exchange. This is due to pressures placed on UK market valuations by Brexit-related issues. They have instead chosen to list in the U.S. or other markets where they perceive a stronger market and higher valuations. Cobalt, the metals investment company backed by Glencore, has scrapped plans to list in London According to one source the lack of demand was responsible for the decline in sales on Wednesday. This would be the largest London market debut since Air Astana listed in February 2024. Indivior: On Monday, the drugmaker announced that it would cancel its secondary listing at the London Stock Exchange with effect from July 25. It cited cost savings and its desire to align itself more closely with operations in the United States. The pharmaceutical company, worth 1.70 billion pounds ($1.25 billion), will continue to list on Nasdaq. BHP, the world's biggest miner in terms of market value (125.10 Billion dollars), made Australia its primary stock exchange when it terminated its dual-listing structures in 2021. When it left London's stock exchange, the company was ranked second by market value. Unilever, the Ben & Jerry’s maker, chose Amsterdam in February as its primary listing. The company, which had a turnover in 2024 of 9.47 billion euros (8.3 billion euro), will also have secondary listings in London, and New York. Glencore: In February, the Swiss miner announced that it was looking at moving its primary listing away from London. New York, which has a market capitalization of 34.5 billion pounds for the company, was the first option that it considered. Three sources familiar with the matter said in May that Shein, the online fast fashion retailer, is working on a Hong Kong listing after its London IPO failed to get the go-ahead from Chinese regulators. Shein, however, had sought a New York listing before attempting to list in London. This was part of Shein's efforts to gain credibility as a global company rather than one that is Chinese, and to have access to large Western investors. Ashtead, the second largest equipment rental company in America, announced in December that it planned to move its listing from London to New York. Ashtead, which has a market cap of 18.3 billion pounds and is listed in London, became a major U.S. company in the early 2000s. Just Eat Takeaway, the Amsterdam-listed food delivery service, delisted from London Stock Exchange last December. The company cited efforts to reduce administrative costs and regulations. The company's market value is 4,05 billion euros. Flutter Entertainment: In 2024, FanDuel's owner moved its primary listing from the US to the New York Stock Exchange. This was just a few short months after adding a secondary listing. CRH - The building materials solution provider with a market value of $61.29 billion switched to the NYSE as its primary listing in 2023. It will continue to maintain a standard listing at the London Stock Exchange. Arm Holdings, a UK-based designer of chip technology, chose Nasdaq to host its largest IPO in 2023. The company was listed in London from 18 years until 2016, when SoftBank acquired it for $32 billion. It is now worth just over $138 Billion.

• Wall Street's potential losers and winners from Trump's new tax bill

  Analysts examine the impact of President Donald Trump's tax-cutting and spending package on U.S. businesses if it becomes law. What Trump has dubbed a "big, beautiful bill", narrowly passed the Republican-controlled House on May 22. The bill aims to extend the tax breaks for multinational corporations, which were set in Trump's first year of office and are due to expire by 2025. The bill is expected to fulfill Trump's populist election promises, such as a crackdown on immigration and the ending of some green energy incentives. Tax breaks are expected to have a positive impact on the U.S. Stock Markets, although some analysts only see a modest increase. Morgan Stanley analysts wrote in a recent note that the changes would only have marginal effects on equity performance. The Congressional Budget Office reported on Wednesday that the overall bill will add approximately $2.4 trillion to U.S. government debt of $36.2 trillion. The following list includes industries and companies likely to be affected: Winners of the AEROSPACE and DEFENSE Awards Investors could be interested in investing again in defense companies as the new legislation aims to increase spending on air and ballistic missile defense, munitions, and border security. Chris Haverland is a global equity strategist with Wells Fargo Investment Institute. We currently rate industrials as neutral. There will be some offsets, but the defense sector should benefit. Brian Mulberry is the client portfolio manager for Zacks Investment Management. He named defense contractors RTX, and General Dynamics, as potential beneficiaries. The iShares US Aerospace & Defense ETF has reached new highs. RENEWABLE ENERGY – LOSERS The shares of U.S. Solar companies fell on May 22 as the bill seeks to cancel funding for grant programs that were created under the Biden Administration in the 2022 Inflation Reduction Act. Dave Grecsek is managing director for investment strategy and research of wealth management firm Aspiriant. "We might have some downsides to renewable energy, but most of them are already priced in." First Solar, Enphase Energy, and Sunrun all have a negative profit for the year. HEALTH INSURERS – LOSERS Fiscal hawks are pushing for funding cuts in order to offset the tax component of the bill. The reductions in Medicaid funding may also transfer the costs to local and state governments who are likely to be burdened with increased health care expenses. Morgan Stanley stated that this could lead to significant revenue losses for hospitals and potentially pressure the credit quality of state and nonprofit municipal health care bonds. The focus will be on the shares of major health insurance companies CVS, Humana and UnitedHealth. The S&P 500 Managed Healthcare index is down by 30.6% for the year. HOUSING & REALAND - LOSERS BofA Global Research stated that it expects rates to stay high if the bill doesn't address deficit reduction in a meaningful way. It also identified several companies who could be negatively affected by higher rates. BofA Global Research has said that SBA Communications Equinix, and Alexandria Real Estate Equities, are among the companies with real estate links at risk. Homebuilders must take a hit to their margins to make the home more affordable. This is a simple way to translate how fiscal stimulus has a negative impact on the stock market, said Viresh KANABAR, macro strategist at Macro Hive. DOMESTIC PRODUCERS – WINNERS The bill includes legislation that extends or expands the Tax Cuts and Jobs Act provisions, which are due to expire by 2025. These provisions include a 100% bonus on equipment investments, an immediate deduction for domestic R&D expenses, and a looser approach to business interest expense through 2029. BofA Global Research identified a number of S&P 500 firms with no overseas sales who could benefit from this item, including utility companies Alliant Energy and Ameren Corp, as well as American Electric Power Company.

• A court has barred a Russian tycoon in prison from appealing the Transneft Case

  The English Court of Appeal denied Russian tycoon Ziyavudin Magomedov, who is currently in jail, permission to appeal a ruling that dismissed his $14 billion lawsuit filed against Russian oil pipeline monopoly Transneft as well as other companies. Magomedov filed a lawsuit against the company, as well as several other defendants at London's High Court. He claimed that his arrest in 2018 on embezzlement allegations triggered a Russian government-supported scheme designed to strip him of valuable port operators. Transneft and the U.S. private equity company TPG, among other companies, were successful in their bids to block Magomedov’s London lawsuit. Transneft announced late Wednesday that Magomedov was denied permission to appeal Magomedov's ruling by the English Court of Appeal. It is evident from the English proceedings that Mr Magomedov suffered massive losses as a result wrongdoings against him. Magomedov will continue to pursue justice and fairness wherever he is able, according to a Magomedov spokesperson. Magomedov, who founded the Summa Group with his brother Magomed, once controlled a vast empire that included everything from oil and gas to port logistics. The brothers were arrested in one of the highest-profile prosecutions in recent years on charges of embezzlement, organised crime and fraud. Magomedov received a sentence of 19 years imprisonment in 2022. He claims that the charges against him were unfounded, and he unsuccessfully appealed his conviction. Mark Potter edited the report by Vladimir Soldatkin.

• US officials report spillage of 2,000 gallons diesel on the Baltimore waterfront

  Officials said that a 2,000-gallon spill of diesel, which originated in a Baltimore hospital, Maryland on Wednesday, contaminated a waterfront area in a popular tourist destination in the city. However, there was no effect on the drinking water. In a press release, Maryland Governor Wes Moore's office said that the spill was caused by a Johns Hopkins Hospital near the marina. The initial estimate of 100 gallons was made. The statement said that the spill was contained to the Harbor East Marina, an area of approximately 100 by 250 yards. Moore's Office said the dye in diesel fuel had caused the water to turn red. The U.S. Coast Guard is working with an outside contractor on the cleanup. Moore wrote in a Wednesday morning post on X that he and his team were currently onsite, at Fells Point. The oil spill had yet to be identified. Fells Point, a historic waterfront neighborhood of the city, is currently undergoing an oil spill investigation. According to a statement by the governor, Johns Hopkins Hospital responded. A request for comment made outside of regular business hours was not immediately responded to by the hospital. Reporting by Rajveer Pardesi in Bengaluru and Shubham Kaalia. Mark Potter edited the article.

• Bousso: Trump's China ethane import curbs are another self-harm exercise.

  Trump Administration seeks license for ethane imports to China China is responsible for 46% US ethane imports Plastics are made from ethane Ron Bousso LONDON, 6th June - The Trump Administration's latest attempts to curb U.S. exports of petrochemicals to China may end up harming the U.S. economy just as much or even more than China. The boom in plastics feedstocks between the two world's largest economies is an excellent example of how a global, dynamic trading system can benefit both parties. The U.S. ethane industry has grown rapidly in recent years. This excess production was met by an expansion of the overseas petrochemical market, especially from China. Trump exempted all energy products from the "Liberation Day", sweeping import tariffs, on April 2. This was an apparent indication of Trump's administration's concern about the potential impact energy levies may have on consumer prices. Enterprise Products Partners, a top U.S. operator of marine export terminals of liquid natural gas, announced on May 29 that an agency of Commerce had notified it that the company would now need a license to export butane and ethane to China because of the "unacceptable" risk that China could use the products for military purposes. About 40% of the 213,000 barrels of ethane per day that Enterprise's main terminal exported last year was shipped to China. The company claimed it was unable to determine whether it would be able to obtain a license. The U.S. move was the latest in Washington's high stakes trade war against Beijing. It seemed to have cooled somewhat after both sides met in Geneva in late November and agreed to a 90-day ceasefire to reduce triple-digit tariffs. The rash nature of these trade war salvos is evident in the export restrictions, especially on ethane. Ethane is a natural gas byproduct that's used to make the building blocks of plastics. There is no evidence that China's military uses ethane and butane beyond obvious dual-purpose use in plastics, heating fuel, or refrigerant. The notice of the export license did not mention polyethylene, a material that ethane can be used to produce. It is clear that the loss in ethane from the United States will harm China's petrochemical industry. China reportedly exempted U.S. ethane in April from the reciprocal 125% tariff it imposed on U.S. imports. This was done to relieve pressure on China's petrochemical industry. The curbs are cut in both directions. Self-Inflicted Wound According to Energy Information Administration, ethane production will reach a record 2,83 million bpd by 2024. This is a nearly threefold increase from 2014. The surge in U.S. onshore shale gas production was the main driver. According to the EIA, the U.S. exports of ethane have increased 13-fold over the past decade, reaching 492,000 bpd. Of that amount, 46% went to China. According to Kpler, China imported 261,000 bpd of ethane from the United States last year. China is the only country that can absorb U.S. ethane at an increasing rate. According to the Oxford Institute of Energy Studies, China's capacity to produce ethylene is expected to increase to 80 million tons annually by 2028, up from 55 million ton per year in 2024. This represents 50% of global new capacity. India and Thailand are likely to become new markets for U.S. exports of ethane, but this will take time. The United States is increasing its ethane terminal capacity. However, the importing countries in Asia will need years to build their import terminals and ethane vessels. Losing the U.S. feedstock of ethane will definitely erode profit margins for petrochemical producers in China. They will have to rely on more expensive feedstock naphtha or import ethane directly from smaller exporters. This could result in temporary plant closings under certain circumstances. It is unlikely that it will have a significant impact on the growth trajectory of this sector in China. According to Sinopec’s Economics and Development Research Institute’s 2024 annual report, around 70% of China’s total ethylene capacity uses naphtha. Ethane and liquid petroleum gases make up only 8%. A halt to ethane imports to China would have a domino effect on the United States, where domestic inventories would build up and force producers to reduce ethane production in shale basins. The profitability of oil and natural gas drilling operations could be affected. This could result in an excessive amount of ethane being present in natural gas. The cost of producing liquefied gas, which is a major U.S. business, would increase. It is possible that the Trump administration's ethane restrictions will achieve its goal of harming China's Petrochemical Industry, but at a cost to China's Oil and Gas industry. Want my weekly column, plus trending energy stories and additional insights delivered to your inbox? Subscribe to my Power Up Newsletter here.