China has reacted to the US trade war by imposing tariffs on American energy resources, including a 15% duty on liquefied natural gas (LNG) and coal and a 10% duty on oil and agricultural products. This move follows the US decision to impose a 10% tariff on all Chinese imports.
The US-China trade war is not new, as a similar dispute occurred during Donald Trump’s first term, when China stopped importing US LNG from 2018 to February 2020. During that time, the US LNG was redirected to Asian markets, where prices were higher and did not reach Europe. As a result, some European gas consumers, such as those in the UK, had to rely on alternative sources of supply.
Experts believe that the impact of the US-China trade war on the global energy market will be limited. China, the world’s largest energy consumer, has a diverse range of energy sources, including coal, oil and natural gas and is not heavily reliant on US energy imports. In 2023, China imported only 4.3 million tons of US LNG, out of a total of 77 million tons of LNG imports.
Russia, a major energy producer, is likely to benefit from the US-China trade war, as it can increase its energy exports to China and other Asian countries. The “Power of Siberia” pipeline, which is expected to reach its maximum capacity in 2025, will be a key factor in this development.
The US-China trade war will also have an impact on the global oil market, as the US is a major oil producer and exporter. However, the impact will be limited, as the US has a diverse range of oil customers and the country’s oil production is not heavily reliant on any one market.
In the long run, the US-China trade war may lead to a re-evaluation of the global energy landscape, with a greater emphasis on diversification and regional energy markets.