On May 13, China announced an increase in retaliatory tariffs on USD 60 billion of imports from the US as part of the escalating trade dispute between the two countries.
The tariffs will jump to 20%-25%, effective June 1, from 5%-10% currently. These measures are in response to the increase in US tariffs on USD 200 billion of Chinese imports to a 25% rate on May 10 from 10% previously.
Moody’s said that one vulnerable US industry is the growing US LNG export sector. The tariffs could slow development of incremental LNG export facilities because any reluctance on the part of Chinese energy companies to contract with US exporters as a result of higher costs will reduce the number of global counterparties seeking additional US capacity.
