Posted on 08/08/2018 10:17:45 AM PDT by bananaman22
Amid a steep correction in crude prices, China said on Wednesday that it would impose a 25-percent tariff on U.S. imports worth US$16 billion, including crude oil, diesel, cars, coal, and steel products, in retaliation to the U.S. list of US$16 billion worth of Chinese imports that will be taxed by U.S. authorities from August 23.
On Wednesday, the Office of the United States Trade Representative (USTR) released a list of around US$16 billion worth of imports from China that will be subject to a 25-percent additional tariff as part of the United States’ response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property, the office said.
“This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6,” it added.
China didn’t waste time in retaliating, and said today that its tariffs on 333 U.S. products, including crude oil, would also take effect on August 23.
(Excerpt) Read more at oilprice.com ...
China is playing a very weak hand.
Unfortunately, this is a short term condition. Supply will balance relatively quickly for most products. I admit, however, I'm not sure to what extent commodity pricing, supply and demand should be affected.
I think long term domestic industry increasing is a very good thing. Problem for China is this... if American’s quit buying Televisions made in china, we all watch the one we have until our industry ramps up. China doesn’t produce much oil and gas. That industry does not ramp up very quickly.
That's what the 0bamorrhoids told us, while we were starting our massive oil/gas boom on PRIVATELY HELD land.
Oil isn’t completely fungible, as different refineries are tuned to different crudes. But whatever oil China stops buying from the US, they’ll have to buy from somewhere else. (They might even have to tune their refineries to handle that crude...) That increased demand on that oil will raise that price, and will make our oil attractive in that market for someone else. Over time it all balances out.
The LNG price will have to increase as China’s demand of it will increase.
EU’s demand of LNG is also increasing.
We have drilled oil and gas wells in this country for 100 years. We taught the middle east how to do it. We pioneered horizontal drilling and shale production. We weren’t ramping up an oil and gas industry.
Just raise the price of soybeans to balance things out. I don’t see what China has that we need anyways, unless you include cheap slave labor.
Won’t too many windmills in China disperse the fog? :)
China is going to need MORE COAL ,oh is that from the US also ,LOL
Oil is easy. The Chicoms will buy from somebody else and whoever was going to buy from that party can buy US supplies. Seems easy, if not a bit of a logistical problem.
No. You are thinking fans. Fans blow the smog away. But fans have to be plugged into the windmills. The windmills run on smog blowing through the props. The smog also helps to hide said props and windmills thus killing birds and feeding the peasants.
ya , you can’t Stamp “Made In The USA” on Oil ,LOL
Everybody that sells to China will ultimately raise their price to match the US price. China has raised the price on themselves, for a commodity that they can’t readily produce.
Duh! No problem at all. Thats the point.
Or our new friends in NK would soon be glad to make some low cost electronics.
Tariffs lower the volume of petrol to the Reds. Total lower volume in US petrol sales tends to lower the price for everyone else.
“And that reduces prices for Americans.”
I’ve read that each $0.01 reduction at the pump injects around $1.0B directly into the US economy ... that money saved at the pump becomes disposable income for consumers. I wish I could dig up the article, but I’ve seen that mentioned a couple of times over the years.
It’s a win win! We get lower gas prices which will help our economy.
See Freepers tariffs are good. It brings jobs here and lowers energy costs!
One thing with China.
China has been the credit card over the last 40 years. We owe them. So if we go to war with them, then they don’t get their money.
“Wow that about as stupid a move as you could make. Create your own oil embargo on your own economy.”
And it gets better!
“After all the idiotic “But Trump Is Hurting the Soybean Farmers! Bad Trump! Stupid Trump! Evil Trump!”
China can NOT win this hand. They don’t Have the chips to bluff with.
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