Global LNG: Prices stable amid high demand, US-China trade spat

Are Trumps Tariffs Actually Increasing The Trade Deficit

China's exports to the United States surged last month as companies rushed to fill orders ahead of a jump in USA tariffs on Chinese goods.

A stalemate appears the most likely endgame, with new US and Chinese tariffs staying in place for months or even years.

China's import figures are closely watched by the industry to determine whether and when Chinese crushers will end a virtual boycott of U.S. soybeans, a move that could put upward pressure on futures trading on the Chicago Board of Trade. That was in retaliation against US plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods from August 23.

The now proposed charge is 10%, but it could increase to 25% once a consultation period ends.

-China trade conflict. China's commerce ministry announced on Wednesday that it will impose additional tariffs of 25 percent on 16-billion dollars' worth of US imports...starting August 23. The goods being targeted by China include crude oil and cars.

Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics in Washington, said he expected that there would be little to stop further escalation of the U.S.

Shipping consultancy Drewry have predicted the container shipping industry could lose as much as 1.8 million TEU, a contraction in global trade of 1%. That was off slightly from June's 13.6 percent rate but still stronger than China's global export growth. The reaction from China was swift and predictable in this tit-for-tat thing we've got going on. India's Commerce Department had suggested keeping 25 percent tariffs on solar cells and modules imported from China on Monday.

In 2017, the US exported a total of $5.6 billion worth of scrap commodities to China. The Commerce Ministry said it is responding to the United States' decision to slap 25-percent tariffs on another US$16 billion of Chinese goods August 23.

The US announced earlier this week that its own tariffs on $16bn of Chinese goods would start that day. China, in response, said it would do the same to a like amount of American exports to China. Trade Representative (USTR) has said benefit from the Made in China 2025 industrial plan, aimed at making China competitive in high-tech industries. Chinese state media has hit back at the light of the levies that have been threatened, saying the Asian nation would retaliate. China now appears willing to discuss changes to its strategic plan, Made in China 2025, which the Trump administration has identified as a long-term threat to big USA industries like aircraft manufacturing, semiconductors and pharmaceuticals. Around afternoon, the benchmark Shanghai Composite Index surged 1.8%, or 49 points, to 2,793.04, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.7%, or 39.16 points, to 1,505.86.

Negotiations still need to take place with Canada.



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