China is targeting U.S. energy in response to President Trump’s decision Friday to place tariffs on $50 billion in goods from the Asian power.
China announced that it would launch its $50 billion counter attack in two waves. The first will begin July 6 and will impose a 25 percent tariff on soybeans, agricultural products, automobiles, and even water originating in the U.S., according to the Chinese foreign ministry.
The second round of tariffs, of 25 percent, will include energy commodities from the U.S., including natural gas and crude oil. China didn’t announce a start date.
The retaliation could harm the president’s “energy dominance” agenda, which relies heavily on exporting natural gas and oil. China has become a prime destination, with India, South Korea, and Japan.
The later 25 percent tariff would apply to energy products, chemicals and medical equipment. It will be announced in a separate action.
“We deeply regret that the United States has disregarded the consensus it has formed and is fickle, provoking a trade war,” said a spokesman for the Chinese Ministry of Commerce. “This move is not only damaging bilateral interests but also undermining the world trade order. China firmly opposes this.”
The spokesman said China “does not want to fight a trade war,” but is left no choice “in the face of the short-sighted behavior of the United States.”
“All the economic and trade achievements previously reached by the two parties will be invalid at the same time,” the spokesman said.
“We call on all countries to take joint action, resolutely put an end to this outdated and regressive behavior, and firmly defend the common interests of mankind.”
The U.S. oil industry’s top lobbying group, the American Petroleum Institute, similarly criticized the Trump administration.
“Instead of utilizing a transparent decision-making process that provided room for input from key stakeholders, the administration continues to take serious missteps in the trade arena that could undermine American jobs and America’s role on the global energy stage,” said Jack Gerard, the group’s president and CEO.
“Trade wars with key trading partners will be detrimental to the U.S. economy and consumers,” Gerard said.
