Sino-American Trade War Escalates

The trade war between the US and China escalated overnight September 17-18, with US president Donald Trump imposing, effective September 24, 2018, a 10% tariff on $200bn of imports from China and Beijing responding September 18 with tariffs on $60bn of US goods, including LNG imports.

But the Chinese tariffs are at lower rates – 5% and 10% - than the initial threat of 5%, 10%, 20% and 25% tariffs. The tariffs will be imposed simultaneously with the US tariffs, on September 24.

The 10% tariff, Trump said in a statement, would be ratcheted up to 25% on January 1, 2019, and his trade moves would not end there: “Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267bn of additional imports.” 

However, he also said 300 items would be removed from the list of goods subject to the tariff, including smart watches, some chemicals and other products such as bicycle helmets and high chairs.

Andrew Walker, vice president, LNG Strategy for Cheniere Energy, told the Gastech conference in Barcelona September 18 Cheniere couldn't see any economic impact from the tariffs and that Cheniere's relations with China remain cordial.