How China tariffs on US commodities, energy stand after Phase 1 trade deal
China and the United States have agreed terms of a Phase 1 trade deal under which the United States reduced some tariffs and Beijing cancelled retaliatory duties that were scheduled to take effect on Dec. 15.
Before the Dec. 15 deal, US corn, sorghum, wheat, undenatured ethanol and refined copper cathodes had faced an additional tariff of 10 percent on shipments to China. Propane, cotton, aluminium scrap, copper scrap and rare earth magnets were all set for an additional 5 percent duty.
Below is a list and timeline showing how China’s tariffs on key US commodities and energy items stand after the Phase 1 accord.
CRUDE OIL
China imposed a 5 percent tariff on US crude oil shipments from Sept. 1, the first time US oil had been targeted since the trade war between the world’s two biggest economies started more than a year ago. The 5 percent tariff was not affected by the Phase 1 deal.
China, the world’s biggest crude importer, has cut US shipments from a record high last year. Chinese customs data showed imports in the first 10 months were halved year-on-year to 146,275 barrels per day.
PROPANE
China removed an additional 5 percent tariff on US propane shipments that was set to take effect from Dec. 1. A 25 percent duty that China imposed on US propane on Aug. 23, 2018, remains in place. Chinese firms process US propane into petrochemicals such as propylene. Imports last year were worth an estimated $2 billion.
LIQUEFIED NATURAL GAS (LNG)
China imposed a 10 percent punitive tariff on US LNG shipments in September 2018, raising it to 25 percent in June. LNG duties were not affected by the Dec. 15 deal.
Imports of the super-chilled fuel in the first 10 months of 2019 shrank 87.2 percent on the year to 258,955 tonnes, according to Chinese customs.
METHANOL, ETHYLENE GLYCOL (MEG)
China imposed tariffs of 25 percent on US methanol and MEG in June this year. They were not affected by the Dec. 15 deal.
SOYBEANS
No additional duties had been scheduled to come into effect on Dec. 15.
A 25 percent tariff on soybeans in July 2018 had halted all buying by commercial buyers, but Chinese crushers went back to the US market following a trade truce in December last year. An additional 5 percent duty came into effect in September. The Chinese government has given tariff exemptions to some US soybean imports.
China bought 11.3 million tonnes of soybeans from the United States in January-October, down 31.8 percent from last year. The United States has sold at least another 1.5 million tonnes of beans to Chinese crushers since early November.
PORK
American pork faces total import duties of 72 percent after including the 12 percent “most-favoured nation” tariff. These duties were not changed in the Dec. 15 deal, but China is expected to boost US meat imports. An outbreak of African swine fever in China has decimated the world’s largest pig herd and sent domestic pork prices soaring to record levels.
Total import tariffs on US frozen pork will go down to 68 percent from Jan. 1, when the cut in tariff rates on frozen pork shipments from all countries - which does not apply to carcasses, chilled pork and offal - takes effect.
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