China threatens new tariffs on American products

September 6, 2018 - By Kristin Houston

China threatens new tariffs on American products

Chinese population used to deal with every demand from American natural gas suppliers simply because they needed it so badly. While the USA has a huge amount of natural gas resources, China suffers from coal pollution.

The biggest American suppliers like Exxon Mobile and Cheniere Energy have seen the possibility and have begun to build facilities to transport the gas. It can be transported by ship in its super-cooled liquefied statement. So, there are over 20 new expensive transport systems ready to transfer gas to China.

And Chinese officials were so eager to get the deal that during the last visit of Donald Trump to Beijing, they even agreed to invest 43 billion dollars into the Alaskan LNG project.

However, with the escalating trade war between the USA and China, started by Trump’s statements about unfair trading policies, the Chinese government decided to increase tariffs by 10 percent on 6o billion dollars’ worth of products from the USA, including LNG.

The head of LNG center, Charlie Riedl, says that this news is very concerning. It also creates problems for the projects that are still in development and may be delayed.

It is also believed that this trade war will cause issues for the export of LNG, as they still need financial help.

The USA started to export LNG in 2016 when a glut appeared in natural gas stores. Businessmen continue to open new terminals across the USA. The last one was opened this year in Cove Point, Maryland.

China, on the other hand, continues to raise its demand for natural gas.

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