Clyde Russell of Reuters covers the breakdown of U.S.-China trade in oil, LNG, and coal following China’s tariffs in retaliation for U.S. trade actions, escalating global trade tensions and divisions. Russell writes:
The trade in crude oil, liquefied natural gas and coal between the United States and China is effectively dead after Beijing responded to President Donald Trump’s tariffs with measures of its own.
China, the world’s biggest importer of the three energy commodities, on Tuesday slapped import duties of 15% on U.S. LNG and coal, and 10% on crude oil and farm equipment.
Beijing’s move came after the Trump administration imposed an additional 10% tariff on all imports of Chinese goods into the United States. […]
China’s reaction raises the risk of further moves by the United States, and ratchets up the trade tension between the world’s two largest economies. […]
However, the immediate impact of China’s measures on imports of U.S. crude, LNG and coal is likely to be limited.
China imported 5.99 million barrels of crude from the United States in January, according to commodity analysts Kpler. […]
China is also flexing its muscle in commodities by announcing new export controls on five minerals that are used in defence and energy transition industries.
The controls, which come into effect immediately, cover the metals tungsten, tellurium, bismuth, indium and molybdenum and their related products.
The measures make it more likely that Western nations will seek to find and develop their own supplies.
But this will mean having to engage with companies and governments in Africa, Asia and Latin America, many of which are likely to be targets of Trump’s tariff and aid measures.
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