Retaliation of China in the trade war with the United States

By FullAvanteNews S.S Last updated Sep 19, 2018

Trade wars

China imposes tariffs on USD 60 billion to thousands of products imported from the US Reprisals in the trade war specifically for the latest tariffs imposed by the United States worth USD 200 billion to Chinese goods announced by the Trump Administration on September 17 of this year

According to the Ministry of Finance of China, according to Reuters, Beijing claim that taxes will be imposed on a total of 5,207 American products, ranging from liquefied natural gas to certain types of aircraft, as well as cocoa powder and frozen vegetables.Tariffs would be set at 5 and 10 percent, instead of the previously proposed rates of 5, 10, 20 and 25 percent, according to the spokesperson.China confirmed its countermeasure a day after the United States said it would proceed to establish additional tariffs on imports worth 200 billion dollars from China.United States tariffs would be set at a level of 10 percent until the end of the year, and would go to 25 percent as of January 1, 2019, explained the President of the United States, Donald Trump.

Both countries plan to start implementing the new measures as of September 24.

In addition, Trump warned that if China takes retaliatory measures against US farmers or other industries, “we will immediately seek the third phase, which is tariff on approximately USD 267 billion of additional imports.” Now, we see how China’s response does not match the US $ 200 billion measure taken by the United States.

Regarding the trade war, Peter Sand, BIMCO’s Head of Analysis of Shipping, states that “As China imports much less than it exports to the United States, it would need to be forced to look at new measures of reprisals if the trade war continues to develop. “

Impact on LNG transport

Although for a period of 12 months to June 2018, China was the second largest buyer of LNG from the United States, (3 mmtpa of US LNG), it is expected that the measures will be intensified as a result of the commercial dispute between EE. UU And China, therefore, Chinese buyers have gradually reduced purchases of LNG from the US. UUAdditionally, he affirms that, in the short term, the impact is lower because the level of the tariff is lower than initially proposed and it is known that the Asian country has already been provisioned for the winter. Finally, it is expected that in the long term the impact on the development of the offer will be felt as it would strongly impact the new LNG projects in the United States, which seeks to secure with supply contracts to China in the long term. However, US LNG continues to be highly demanded in Europe and other Asian countries.

Source World Maritime News