China drops US crude from tariff retaliation list

China will impose a 25pc tax on most energy commodity exports from the US beginning on 23 August — but it is exempting crude oil from its retaliatory measures to US tariffs that go into effect the same day.

China's Ministry of Commerce today published the list of US exports it has slated for tariffs in response to the second tranche of US duties announced yesterday. Beijing originally publicized its intent to target burgeoning US crude exports with a punitive tax, but the commodity is not on the list published today.

The Chinese government did not provide an explanation, other than noting that it adjusted the list of items scheduled for retaliation based on "the opinions of relevant departments, industry associations and enterprises, in order to protect the interests of domestic consumers and enterprises to the greatest extent."

China imported about 510,000 b/d in June, as Asia-Pacific has become an increasingly important market for US crude. US crude exports hit a record monthly high that month of 2.2mn b/d, with China as the top destination.

China's largest refiner state-controlled Sinopec last week said it would back off imports of US crude as relations with Washington deteriorate.