China imposes 5% tariff on U.S. crude oil imports
China imposes 5% tariff on U.S. crude oil imports
The first tranche of Chinese tariffs on U.S. goods of a value equal to U.S. $75 billion and including a 5% tariff on U.S. crude oil was effective beginning September 2019.
Crude oil is an important commodity to the Chinese economy, and it is reported that Chinese demand for U.S. crude oil reached historic highs in 2018—with imports increased by 113%. However, U.S. crude accounts for only 2.8% of China’s total market.
China will, for the short term, likely continue purchases of U.S. crude oil, but in the longer term, China may turn to other countries (such as Russia, Saudi Arabia, Angola, Iraq, and Oman—countries that collectively account for 55% of Chinese oil imports so far this year).
The Chinese tariffs are in response to a 15% tariff placed on U.S. $150 billion of Chinese imports beginning 1 September 2019, and U.S. $300 billion beginning 15 December 2019.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
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John L. McLoughlin |
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Luis (Lou) Abad |
Irina Vaysfeld |
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Christopher Young |
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George Zaharatos |
Jessica Libby |
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