China LNG Buyers Seek to Swap U.S. Cargoes After Fresh Tariffs
This is another big headache for China in this spat. Most US export products to China are commodities – easily interchangeable. Just swap the cargo with an equivalent one from another source and the US export still gets shipped. You can’t do the same with consumer goods – not that easily at least. So, even if China slapped 100% tariff on US imports, those will go where China sucks those commodities off then. If China buys more oil from a Middle Eastern nation as a result, the oil from this Middle Eastern nation is not going to be delivered somewhere else and an opportunity pops up for US oil then. Great for traders. The US will adapt and China, China will pay higher prices for its commodities as all this rerouting of cargoes costs money.
Liquefied natural gas buyers in China are seeking to swap their U.S. shipments for cargoes from other nations after Beijing pledged to raise tariffs amid a deepening trade dispute, according to traders with knowledge of the situation.
