Thomas Peter-Pool Getty Images Donald Trump with Chinese President Xi Jinping
12 August, 2018, 00:00
So far, China has now either imposed or proposed tariffs on US$110 billion of USA goods, representing the vast majority of its annual imports of American products. The list includes a lot of industrial and machinery products.
The U.S.is even willing to hurt allies and itself to make that point: The tariffs "will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea".
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.
In the USA, 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. Earlier, Trump informed the U.S. Trade Representative to develop a list of $200 billion of Chinese products for a 10% tariff.
The now proposed charge is 10%, but it could increase to 25% once a consultation period ends.
China's threats of new tariffs on $60 billion worth of US imports will create shifts in the energy market, as American liquefied natural gas makes the list of goods Beijing will target, analysts told CNBC.
Another $16 billion of tariffs on imports from China will take effect in a couple weeks - August 23 to be precise.
"Looking forward. the outlook for China's exports is grim in view of the escalating trade war", said Chang Shu and Fielding Chen of Bloomberg Economics.
Shipping consultancy Drewry have predicted the container shipping industry could lose as much as 1.8 million TEU, a contraction in global trade of 1%.
But China might not blink, especially with the US midterm elections coming in November.
The trade war between the world's two biggest economies has forced many multinational companies to reschedule purchases and rethink where they buy materials and parts to try to dodge or blunt the effects of tit-for-tat tariffs between Washington and Beijing. "This latest development and its impact will be discussed at the MRF Summit taking place at WASTECON in Nashville on August 22-23".
CURRENCY NEWS: The central parity rate of the Chinese currency renminbi, or the yuan, weakened 4 basis points to 6.8317 against the U. Imports surged 27.3 percent to $187.5 billion, up from the previous month's 14.1 percent. China's imports of formulations from the United States recorded a CAGR of 13.8% during 2012 -2016. Beijing has retaliated against the USA tariffs with higher duties on a similar amount of American goods.
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.
Companies have scaled back purchases of spot LNG cargoes in recent months as prices shot up, traders said. China, in response, said it would do the same to a like amount of American exports to China. They criticize Trump's tactics but share USA complaints about Chinese industrial policy and market barriers.