Oil Report

FACTBOX-How China tariffs on U.S. commodities, energy stand after Phase 1 trade deal

    BEIJING/SINGAPORE, Dec 24 (Reuters) - China and the United States have agreed terms of a
Phase 1 trade deal under which the United States reduced some tariffs and Beijing cancelled
retaliatory duties that were scheduled to take effect on Dec. 15.
    Before Sunday's deal, U.S. corn, sorghum, wheat, undenatured ethanol and refined copper
cathodes had faced an additional tariff of 10% on shipments to China. Propane, cotton, aluminium
scrap, copper scrap and rare earth magnets were all set for an additional 5% duty.
    Below is a list and timeline showing how China's tariffs on key U.S. commodities and energy
items stand after the Phase 1 accord.

    China imposed a 5% tariff on U.S. crude oil shipments from Sept. 1, the first time U.S. oil
had been targeted since the trade war between the world's top two economies started more than a
year ago. The 5% tariff was not affected by Sunday's deal. 
    China, the world's biggest crude importer, has sharply lowered U.S. shipments from a record
high last year. Chinese customs data showed imports in the first 10 months were halved
year-on-year to 146,275 barrels per day.
   China removed an additional 5% tariff on U.S. propane shipments which was set to take effect
from Dec. 1. A 25% duty that China imposed on U.S. propane on Aug. 23, 2018, remains in place. 
   Chinese firms process U.S. propane into petrochemicals such as propylene. Imports last year
were worth an estimated $2 billion.
   China imposed a 10% punitive tariff on U.S. LNG shipments in September 2018, raising it to
25% in June. LNG duties were not affected by Sunday's deal.
   Imports of the super-chilled fuel in the first 10 months of 2019 shrank 87.2% on the year to
258,955 tonnes, according to Chinese customs. 
    China imposed tariffs of 25% on U.S. methanol and MEG in June this year. These were not
affected by Sunday's deal. 
    No additional duty had been scheduled to come into effect on Dec. 15.
    A 25% tariff on soybeans in July 2018 had halted all buying by commercial buyers, but
Chinese crushers went back to the U.S. market following a trade truce in December last year. An
additional 5% duty came into effect in September. The Chinese government has given tariff
exemptions to some U.S. soybean imports.
    China bought 11.3 million tonnes of soybeans from the United States in January-October, down
31.8% from last year. The United States has sold at least another 1.5 million tonnes of beans to
Chinese crushers since early November
    American pork faces total import duties of 72% after including the 12% "most-favoured
nation" tariff. These duties were not changed in Sunday's deal, but China is expected to boost
U.S. meat imports. An outbreak of African swine fever in China has decimated the world's largest
pig herd and sent domestic pork prices soaring to record levels. 
    Total import tariffs on U.S. pork will go down to 68% in the new year, when tariff rate cut
on frozen pork shipments takes effect.

    An additional duty of 5% on U.S. aluminium scrap, which was to go into effect on Dec. 15,
has been cancelled. The material was already affected by an initial 25% tariff in April 2018,
following by another 25% increase in August 2018.
    Shipments to China were down only 17.3% year-on-year in the first 10 months of 2019, but
those of U.S. scrap copper, subject to a 25% tariff since August 2018, crashed by 76.6% over the
same period.
    China, which this year raised the prospect of restricting rare earth exports to the United
States but has not announced any formal measures, removed the extra 5% tariff on imports of U.S.
permanent rare earth magnets from December as part of the Phase 1 deal. There has been a 25%
tariff on U.S. rare earth ore imports since June 2019.
 Month when          April    July  August  Septem    June  Septem  TOTAL TRADE WAR
 tariffs became       2018    2018    2018     ber    2019     ber  RELATED TARIFFS 
 effective                                    2018            2019  
 Crude oil                                                      5%                5%
 Natural Gas                           25%                                       25%
 LNG                                           10%  to 25%                       25%
 Propane                               25%                                       25%
 Methanol                                      10%  to 25%                       25%
 Soybeans                      25%                              5%               30%
 Pork                  25%     25%                             10%               60%
 Beef                          25%                             10%               35%
 Corn                          25%                                               25%
 Sorghum                       25%                                               25%
 Wheat                         25%                                               25%
 Ethanol               15%     25%                                               40%
 Ethanol                                                                          0%
 Cotton                        25%                                               25%
 Aluminium scrap       25%             25%                                       50%
 Copper scrap                          25%                                       25%
 Refined copper                                10%  to 25%                       25%
 Copper                                        10%  to 25%                       25%
 Zinc concentrate                              10%  to 25%                       25%
 Nickel                                        10%  to 25%                       25%
 Rare earth                                    10%  to 25%                       25%
 Rare earth ore                                10%  to 25%                       25%
 (Reporting by Chen Aizhu, Muyu Xu, Dominique Patton, Tom Daly, Shivani Singh and Hallie Gu
Editing by Kenneth Maxwell, Robert Birsel)