June 2019, Vol. 246, No. 6
Global News
China to Raise Tariffs on LNG Imports from United States
China announced it would raise tariffs on LNG imports from the United States amid a series of additional levies, a move that could further reduce U.S. LNG shipments to the world’s fastest growing importer of the fuel.
By last month, only two vessels have gone from the United States to China, versus 14 during the first four months of 2018 – prior to the start of the 10-month trade war.
On May 13, China said it would boost the tariff on U.S. LNG to 25% starting June 1 versus the current rate of 10%. That move came in retaliation for a U.S. increase on May 10 in tariffs on $200 billion in Chinese goods to 25% from 10%.
U.S. LNG sales jumped 61% in 2018 versus 2017, while China, the world’s second-biggest buyer of the fuel behind Japan, increased its purchases by 39% last year, according to data from the International Gas Union.
The United States and China started imposing tariffs on each other’s goods in July 2018. As the dispute heated up, China added LNG to its list of proposed tariffs in August and imposed a 10% tariff on LNG in September. P&GJ
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