Published: Sun, August 12, 2018
Markets | By Otis Pena

China to hit US LNG imports with tariff

China to hit US LNG imports with tariff

Still, China seems to take its retaliations quite sternly despite the fact that its exports to the USA are worth US$505.5 billion of products versus the United States' US$129.9 billion of American goods exported to China.

The new tariffs will take effect on August 23, matching exactly a new round of US tariffs on Chinese goods announced Tuesday by the Trump administration.

The rise in exports defied expectations of a slump after merchants rushed to fill orders the previous month before Washington imposed 25 per cent duties on $34 billion of Chinese goods on July 6 in response to complaints Beijing steals or pressures foreign companies to hand over technology.

Approved by the State Council, the Customs Tariff Commission of the State Council has made a decision to impose additional duties of 25 percent on the 16-billion-dollar USA products after making proper adjustments to the second part of a list of the products subject to the tariffs. Trump has also threatened that a further $200 billion could be impacted, which would mean that virtually all Chinese imports to the U.S. would be covered.

The U.S. has been seeking to have China reverse course on what it calls Beijing's "unreasonable and discriminatory" policies related to technology transfer and intellectual property and to narrow the trade deficit.

Scrap recyclables exported to China are a big business.

The Mainland China equity market inclined on Thursday, 09 August 2018, as investors continued hunting heavily battered stocks after the benchmark index fell to the lowest level in two and a half years early this week.

Shipping analyst MSI says the liner industry is awaiting the impact of the potential trade war between the USA and China.

One of the pillars of the U.S. Trade Policy Agenda is a trade policy that supports national security policy.

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Beijing has released an additional list of $60 billion worth of USA products it would start taxing if the White House proceeds with the further escalation.

"It now seems unavoidable that the US and China will levy tariffs on the large part and quite possibly all of their bilateral trade flows", says Daniel Richards, Analyst at MSI.

Crude shipments came in at 36.02 million tonnes last month, or 8.48 million barrels per day, up from 8.18 million bpd a year ago, and just up on June's 8.36 million bpd, data from the General Administration of Customs showed.

The United States published its final list of goods subject to the new tariffs on Tuesday.

While concession in tariff may bode well for Indian exporters, non-tariff barriers have been a greater challenge for exporters. And Chinese regulators last month barred Qualcomm, a U.S. telecom leader, from completing its $44b acquisition of Netherlands-based NXP, which would have made it a more formidable competitor for Chinese companies. Those nations have criticized Trump's tactics, but they share USA complaints about Chinese industrial policy and market barriers.

According to a Wall Street Journal article, if the tariff threat is carried through the South Korean parliament will not ratify the US-Korea trade deal announced earlier this year.

While trade tensions are being ratcheting up, China's trade surplus with the U.S. stood at $28.1bn in July, close to the record-high in June, data released yesterday showed. It stated that the US-China conflict could reduce world output by 0.7 percent by 2020, with China's economy slowing by 1.3 percent and the US by 1 percent.

"Chinese gas demand forecasts are underpinning a raft of proposed LNG export terminals along America's East Coast, which align with the Trump administration's bid to turn the USA into an energy superpower".

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