Escalating U.S.-China Trade Dispute Hurts American Energy Leadership, Economy, and Consumers
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WASHINGTON, August 23, 2019 – Today, API issued the following statement on China’s announcement of retaliatory tariffs on $75 billion worth of U.S. goods, including American crude oil and several other petroleum products.
“This escalation of the U.S.- China trade war is another step in the wrong direction, the consequences of which will be felt by American businesses and families,” said Kyle Isakower, API’s Vice President of Regulatory and Economic Policy. “In addition to the impacts on the U.S. economy and jobs, U.S. energy leadership and global competitiveness are threatened as U.S. natural gas and oil exports continue to serve as targets for retaliation.”
“We urge the Administration to quickly come to a trade agreement with China that would lift all tariffs under Section 301, including the damaging retaliatory tariffs on American energy exports.”
Even before China’s formal retaliation against U.S. crude exports, the negative impact of the trade war was already apparent. China’s imports of U.S. crude oil fell from 22% (October 2017 to June 2018) to just 3% of total U.S. crude exports after Section 301 tariffs were first implemented.
Additionally, the U.S. natural gas and oil industry is negatively impacted by the Administration’s tariffs on over 100 industrial products under Section 301 and by steel tariffs under Section 232, and is subject to a 25% retaliatory tariff on U.S. liquified natural gas (LNG) exports to China.
API is the only national trade association representing all facets of the natural gas and oil industry, which supports 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 47 million Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.