China’s proposed tariffs on US energy raise concerns among shale producers
Beijing says it will impose a 25 per cent tariff on US crude, natural gas and coal if Washington goes ahead with tariffs on Chinese goods
China’s proposed tariffs on US petroleum imports, part of a mounting trade war between the two countries, would crimp sales to the shale industry’s largest customer, adding new pressure on US crude prices, according to energy executives and analysts.
Beijing said it would impose a 25 per cent tariff on imports of US crude, natural gas and coal on July 6 if Washington went ahead, as planned, with its own tariffs on Chinese goods that day.
Energy would be added for the first time to a growing trade dispute that has hit imports of Chinese metals and solar panels, and exports of US medical equipment and soybeans.
Targeting petroleum puts US President Donald Trump administration’s “energy dominance” agenda in Beijing’s cross hairs as US shale has grabbed share from Middle East suppliers in Asia.
China is the largest customer for US crude, importing about 363,000 barrels per day in the six months ended in March. Thomson Reuters shipping data shows those exports have increased since, rising to an expected 450,000 bpd in July.