China Imposes Tariffs on US Energy Imports, Impact Limited
China, the world's largest energy importer, has retaliated against US tariffs by imposing levies on imports of crude oil, LNG, and coal from the United States.
Despite China's position as the top global energy importer, its purchases from the US are relatively low. In the first 11 months of 2024, China's crude oil imports from the US declined by 52% to 230,540 barrels per day (bpd), accounting for only 1.7% of its total crude imports.
China's LNG imports from the US have seen growth, totaling 4.16 million tons in 2024. However, the US remains only the fifth largest supplier of LNG to China, accounting for 5.4% of its purchases.
Analysts believe that China's tariffs will primarily benefit other regional LNG producers, such as Australia, and drive more US volumes to Europe.
The tariffs will also impact US crude oil exports, with China halting purchases during a previous trade war. Analysts expect a pause in buying as China seeks cheaper alternatives from regions like West Africa and Asia.
Despite these measures, experts maintain that the tariffs will likely have a limited impact on global oil prices as WTI can be diverted to other regions.
The tariffs may signal an escalation in tensions between the US and China, dampening optimism for a temporary resolution. Market participants are pricing in potential downside risks to global growth due to possible retaliatory measures.
While China is not a significant importer of coal from the US, the value of coking coal shipments increased by over 30% to $1.84 billion in 2024.