Trump to raise tariffs on imports from China: Update
Adds new Trump actions on tariffs.
US president Donald Trump ordered an increase in tariffs on imports from China after Beijing today struck back against his latest round of tariffs on imports from China by imposing a 5pc tariff on imports of US crude.
The existing 25pc tariff on $250bn/yr of imports from China will be raised to 30pc effective 1 October, Trump said via Twitter. An additional $300bn/yr in imports from China, which was set to be taxed at 10pc, will be subject to a 15pc tariff.
Earlier today, Beijing announced retaliatory tariffs on a total of $75bn/yr in imports from the US. The countermeasures include a tax on US crude exports that was exempted in the previous rounds of retaliatory tariffs on a total of $75bn/yr in imports from the US.
The tariff on US crude will be effective on 1 September, the same day as the US plans to implement a 10pc tariff on an additional $133bn/yr in imports from China. A further $165bn/yr in imports from China will be subject to tariffs on 15 December, meaning the entirety of imports of goods from China will be affected. Beijing's response now will encompass nearly the entirety of the $130bn/yr of imports from the US.
Beijing equally staggered its response, holding back some of the planned tariffs, including a 25pc tax on car imports, until 15 December.
Beijing announced its countermeasures just a day before the G7 summit in France where Trump plans to tout the strength of the US economy. But the trade war is expected slow growth in the US and China, with peripheral effects on global growth. The tariffs in place even before the latest round of escalation already will shave 0.3 percentage points off US GDP growth in 2020, analysts with the Congressional Budget Office said yesterday.
Beijing says its latest tariffs are "a forced move to deal with US unilateralism and trade protectionism." It leaves room open for dialog, but there is no confirmation that trade talks tentatively scheduled between the US and China for early September will proceed.
With the entire bilateral volume of trade now subject to existing or planned tariffs, both countries are looking at possible countermeasures on other fronts.
The US is lending support to Vietnam's claim to explore for oil and gas in the South China sea. The State Department yesterday issued a protest against Beijing's "aggressive steps to interfere with ASEAN claimants' longstanding, well-established economic activities, in an attempt both to coerce them to reject partnerships with foreign oil and gas firms, and to work only with China's state-owned enterprises."
The State Department noted that "US companies are world leaders in the exploration and extraction of hydrocarbon resources, including offshore and in the South China Sea." But US companies are not involved in exploration in the disputed areas. "China has sovereignty over the Nansha Islands and its adjacent waters and has sovereign rights and jurisdiction over the relevant waters," Chinese foreign ministry said in response.
US energy and business groups, which have warned of potential consequences from ratcheting up the tariff pressure on China, urged the administration to find a negotiated solution to the trade war.
"This escalation of the US-China trade war is another step in the wrong direction, the consequences of which will be felt by American businesses and families," American Petroleum Industry vice-president Kyle Isakower said.
"Today's Chinese retaliation is unfortunate but not unexpected," the US Chamber of Commerce said.
China in May raised tariffs on US LNG imports to 25pc, closing off the market to US exporters. US crude exports trended lower even before the latest Chinese action. US crude shipments to China averaged 140,333 b/d in January-June, down by 37pc on the year, US government data show.
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India to launch policy to boost critical mineral supply
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Japan’s FEPC calls for clearer nuclear policy stance
Japan’s FEPC calls for clearer nuclear policy stance
Osaka, 20 May (Argus) — Japan's Federation of Electric Power Companies (FEPC) has called for a clarification of the country's nuclear power policy, to ensure stable electricity supply and alignment with its net zero emissions goal. The call comes as the government reviews its basic energy policy , which was formulated in 2021 and calls for the reduction of dependence on nuclear reactors as much as possible. But Japan's guidelines for green transformation, which was agreed in February 2023, states that Japan should make the most of existing nuclear reactors. Tokyo should clearly state in its new energy policy that it is necessary to not only restart existing nuclear reactors, but also build new reactors, said FEPC chairman Kingo Hayashi on 17 May. Hayashi is also the president of utility Chubu Electric Power. Hayashi emphasised that to utilise reactors, it would be necessary to have discussions regarding financial support, policy measures that would help ensure cost recovery, address back-end issues in the nuclear fuel cycle and conduct a review of nuclear damage compensation law. Japan's current basic energy policy is targeted for the April 2030-March 2031 fiscal year, when the country's greenhouse gas (GHG) emissions is forecast to fall by 46pc from 2013-14 levels. To achieve this, the power mix in the policy set the nuclear ratio at 20-22pc, as well as 36-38pc from renewables, 41pc from thermal fuels and 1pc from hydrogen and ammonia. Japan typically reviews the country's basic energy policy every three years. Nuclear, as well as renewables, would be necessary to reduce Japan's GHG emissions, although thermal power units would still play a key role in addressing power shortages. But Japan has faced challenges in restarting the country's reactors following safety concerns after the 2011 Fukushima nuclear disaster, with only 12 reactors currently operational. Japan's nuclear generation in 2023 totalled 77TWh, which accounted for just 9pc of total power output. Tokyo has made efforts to promote the use of reactors, after the current basic energy policy was introduced in 2021. The trade and industry ministry (Meti) has updated its nuclear policy, by allowing nuclear power operators to continue using reactors beyond their maximum lifespan of 60 years by excluding a safety scrutiny period in the wake of the 2011 Fukushima nuclear disaster. This could advance the discussion on Japan's nuclear stance, especially if the new basic energy policy includes more supportive regulations. The trade and industry ministry started discussions to review the energy policy on 15 May, aiming to revise it by the end of this fiscal year. It is still unclear what year it is targeting and what ratio will be set for each power source in the new policy. But the deliberation would form a key part of efforts to update the GHG emissions reduction goal, ahead of the submission of the country's new nationally determined contribution in 2025, with a timeframe for implementation until 2035. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iran's president dies in helicopter crash
Iran's president dies in helicopter crash
Dubai, 20 May (Argus) — Iran's president Ebrahim Raisi has died in a helicopter crash alongside his foreign minister Hossein Amir-Abdollahian, state media reported early today. The two were confirmed dead more than 12 hours after news broke on 19 May afternoon that a helicopter carrying them had suffered "a hard landing" in Iran's East Azerbaijan province as he was returning from Azerbaijan, where he had inaugurated the Qiz Qalasi dam, alongside his Azeri counterpart Ilham Aliyev. "Ayatollah Seyed Ebrahim Raisi, the eighth president of the Islamic Republic of Iran, who had an air accident on Sunday evening as he was returning to [the Iranian city of] Tabriz from the inauguration ceremony of the Qiz Qalasi dam…reached martyrdom, along with his companions," Iran's state news agency Irna reported. The governor of Iran's East Azerbaijan province, Malek Rahmati, and Ayatollah Mohammad Ali al-Hashem, the representative to the province of Iran's supreme leader Ayatollah Ali Khamenei were also on board the helicopter. More than 50 search and rescue teams were dispatched, with support from allied countries, including Russia. Moscow said on 19 May it had sent 47 specialists, all-terrain vehicles and a BO-105 helicopter. Difficult weather conditions, nightfall, and the mountainous terrain had "complicated efforts" by the search and rescue teams to first locate the exact site of the crash, and then reach it, said Iran's interior minister Ahmad Vahidi. But officials on 20 May reported that the search had narrowed, with the head of Iran's Red Crescent Pir Hossein Kolivand confirming at around 06:00 local time (02:30 GMT) that the wreckage had been found. On arriving at the site, rescuers confirmed that there were "no signs of life." Images shared by state media showed only the helicopter's tail had remained intact, with the entirety of the helicopter's cabin significantly damaged and charred. The investigation into the cause of the crash is continuing, but all Iranian officials are pointing to the bad weather as the primary reason for the helicopter losing control. Iran's cabinet held an extraordinary meeting in the aftermath of announcement of the president's death. This was chaired by the country's first vice president Mohammad Mokhber, who will assume the president's powers and functions with the approval of the supreme leader, as per the constitution. A council, consisting of the speaker of the parliament, head of the judiciary and the first vice president, will now be obliged to arrange for a new president to be elected within a maximum of 50 days. This requires that an election now be held on or before 9 July. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Houston refiners weather hurricane-force winds: Update
Houston refiners weather hurricane-force winds: Update
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