The new 10pc tariff on US imports that replaced earlier traiffs ruled unconstitutional by the US Supreme Court keep aromatics arbitrage opportunities in the US closed on paper.
The new 10pc tariffs will keep arbitrages closed for benzene, toluene and mixed xylenes (BTX) for chemical use.
As of 24 February, US benzene (BZ) stood at a $145/t premium to South Korea BZ, according to Argus data, but with the 10pc tariff rate and freight costs at $72/t, the arbitrage remained closed on paper. Similarly, toluene closed at a $145/t premium and mixed xylenes closed at a $129/t premium to toluene and mixed xylenes in South Korea, but the 10pc tariff and freight costs kept those arbitrages shut.
President Donald Trump has threatened to raise the 10pc tariffs — enacted under a different law that allows them to only be in place for 150 days before requiring Congressional approval — to 15pc.
The new tariffs continue to provide an exemption for BTX imports for use in the energy sector, which market participants said means BTX used for gasoline blending. This exemption last year allowed for some toluene and mixed xylene imports to arrive in the US without an import tax.
In 2025, the US imported 529,000 metric tonnes (t) of benzene, 488,193t of mixed xylenes and 183,379t of toluene, according to US Census Bureau data compiled by Global Trade Tracker.
