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 ...
That’s possible.... but I think Trump’s goal is for the US to produce as much as possible what the US consumes. And potentially sell our products overseas as well.
You are probably correct. Price manipulation at the markets by the hedge funds and investor banks dont keep things out of balance long before they intervene.
Hilarious. Gordon Chang says China is on the verge of a financial collapse, and this will NOT help. MAGA!
Iran will make it up. Best of luck with that one... And, as somebody else pointed out, they'll need to increase their coal purchases from...from...dang it.
“Wait... so Tariffs lowered the price??? What?”
no kidding .. oil is a fungible commodity and a big consumer like vhina adding tariffs should make oil prices rise ...
So locally, the Chinese now have to buy oil from more expensive markets to make up for the decrease in US oil imports.
And, locally, the Americans (that’s you and me) now have more oil staying in the domestic market, lowering our prices.
I’m okay with that.
But just to be clear, tariffs in an otherwise free marked will generally raise the price of goods....
As my son likes to say “you’re not doing it right!”
What would the unemployment rate be in the US is half the crap we purchase from the Chinese were to be made in the US?
I’m glad I wasn’t the only one confused. Maybe they have a plan to buy our oil from somebody else?
Symbolic, and hoping nobody notices they really didn’t embargo anything?
I don’t know.
I do know that China only imports $250B of our stuff to our $750B of their stuff. They are already having to cave on soybeans, which is funny.
What’s not funny are semiconductors - components, capacitors, etc.
Huge shortage right now in the world market - wait times of up to a year. China makes a lot of that.
As always...
Oil is a fungible commodity.
I guess China will just be getting more oil through Canada and Mexico *wink wink nudge nudge*
Our tariffs are inflationary for us and deflationary for them. And vice versa.
They make some gasoline, additives from methanol bi-product of coal without passing through a typical crude oil refinery. They are short of NG for fuel, NG liquids for plastics.
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