China to hit US LNG imports with tariff


China to hit US LNG imports with tariff

US tariffs make no dent on China exports surge

US tariffs make no dent on China exports surge

On July 25, President Donald Trump said China is "being vicious" on trade, noting it is targeting USA farmers on goal.

The Trump administration announced on August 8 that it will impose 25% tariffs on an additional $16 billion worth of Chinese imports, as expected.

The trade tensions between the US and China are increasing now that the Trump administration announced it will hit China with another round of tariffs and also increase the tariff rate on additional products in the future. China retaliated with higher duties on a similar amount of American goods. "The largest effects will be felt on the eastbound Transpacific, but the key area to watch is how far tariffs on US imports risk disrupting complex cross-border supply-chains which feed into finished products and which are especially key to the high density of regional and feeder services in the intra-Asia market".

It showed the country's exports rose more than expected, and import growth accelerated to its fastest since January. In a dispute with South Korea past year over its role in hosting a U.S. missile defense system, the Chinese government orchestrated a boycott of Seoul-based Lotte Group that ultimately persuaded it to sell many of its stores in China.

In the U.S., a few natural gas project developers are eyeing China as a potential market to export their future LNG cargoes and some of them have already signed framework agreements with Chinese buyers.

Shipments from China to the US climbed 13 percent in July from a year earlier, to $41.5 billion, after a roughly similar rise in June, customs data show. Since 2016 a handful more have been allowed in via a "cultural exchange" channel.

The world's largest exporter, China is still benefiting from robust global demand even as increasing tensions and rising trade barriers with the United States weigh on the outlook. The outcome of the crisis was a turn by South East Asian nations towards the Chinese economy, on which they have become increasingly dependent.

Companies are already adjusting to the new trade barriers, and shifting supply chains away from China.

For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another 60 billion of American imports.

Given copper's importance in manufacturing and construction, any sign of weakness in Chinese demand would raise concerns about the impact of the trade dispute.

A negotiated truce is also possible.

These actions have the potential "to destroy what is left of the scrap trade between our countries", commented Robin Wiener, the president of the US Institute of Scrap Recycling Industries (ISRI) on Twitter.

However, the compromises China is considering on Made in China 2025 seem small, so far.

Doing the final assembly outside of China will allow companies to bypass the new US tariffs.

But these moves may not do much to the overall trade deficit of the United States, rearranging it instead to other countries.

For 23 states, China is the top source of imports.

The list of products subject to duties, which range from electrical components to plastic tubes and chemicals, contains 279 out of the original 284 originally proposed on the 15 June.