• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Shale Oil Fiasco
  • 6 hours Might be Time for NG Producers to Find New Career
  • 20 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 9 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 10 hours Beijing Must Face Reality That Taiwan is Independent
  • 10 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
A Worrying Sign For U.S. Shale

A Worrying Sign For U.S. Shale

After years of adding drilled…

China Threatens 25% Import Tariff On U.S. LNG

China

In the latest trade war tit-for-tat, China has included for the first time liquefied natural gas (LNG) in its list of goods up for a potential 25-percent import tariff, should the United States impose additional tariffs on Chinese imports.

As the U.S.-China trade spat turns into a full-blown war with tariffs and retaliatory tariffs and threats of further tariffs, U.S. energy exports to China may suffer if Beijing follows through with its threat to slap tariffs on U.S. oil and oil product imports.

Up until Friday, China had excluded LNG from the goods that it would hit with an import tariff in retaliation for a possible new U.S. round of tariffs on Chinese goods.

The Friday statement from the Chinese commerce ministry has already had Chinese LNG end-users and suppliers saying that they would likely deter spot procurement of U.S. LNG cargoes in the near term if the tariff comes into effect.

“[A] 25% [tariff] is not something we can absorb even if domestic demand is strong,” a source at a state-owned Chinese company told Platts on Monday.

“So while this uncertainty persists, I doubt buyers will be buying a lot of spot US LNG.”

Related: Diesel Trucks Aren’t Going Anywhere

For private Chinese companies, a possible 25-percent tariff on LNG imports from the U.S. would completely eat away their margin, and would keep them from being able to afford the cost of importing spot U.S. LNG cargoes in the near term.

According to S&P Global Platts Analytics data, China’s imports of U.S. LNG jumped to more than 1.88 million mt in January to July 2018 alone, up from 1.61 million mt in all of 2017.

Yet Chinese imports have declined over the past two months with just four cargoes in June and July versus five cargoes shipped in May alone, according to S&P Global Platts.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment
  • Porterhouse on August 07 2018 said:
    Communists do not understand capitalism, profits, and markets. A 25% tariff on LNG would force all Chinese manufacturing home to the USA.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play