Traders are expected to seek waivers from China for the tariffs on U.S. energy imports, specifically for oil cargoes that are either already en route to China or have been booked, according to sources cited by Reuters.
Earlier this week, China announced a 10% tariff on U.S. crude oil and a 15% tariff on American liquefied natural gas (LNG), effective February 10. The move follows the U.S.’s imposition of a 10% tariff on all Chinese imports, which took effect on February 4.
Sources told Reuters that traders with cargoes already booked will likely request waivers from China. However, it will be harder for traders to secure waivers for new shipments moving forward.
Currently, four oil tankers are carrying U.S. crude to China, with estimated arrival dates between February 11 and April 1, based on data from LSEG and Kpler. Additionally, at least eight more cargoes have already been booked by traders, including Vitol, Gunvor, and the trading arms of ExxonMobil, Occidental, and TotalEnergies.
PetroChina is also shipping two cargoes of U.S. LNG, which are expected to arrive at Chinese terminals this week and next.
In response to the tariffs, traders may look to swap cargoes, rerouting U.S. crude and LNG originally bound for China to other buyers in North Asia, such as Japan and South Korea, analysts say.
While China’s tariffs on U.S. crude, LNG, and coal are unlikely to significantly affect Chinese purchases—given that U.S. energy exports to China were already limited before the trade tensions—the move could disrupt global commodity trade flows. It could also affect regional markets and energy prices, analysts warn.
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