U.S. national trade association, API, has emphasised the counterproductive effects of Section 301 tariffs on America’s natural gas and oil sector, underscoring the damaging impact that Chinese retaliatory tariffs would have on U.S. LNG exports, and urged the Administration not to impose additional tariffs on Chinese products at the hearing before the U.S. Trade Representative on Section 301.
“The U.S. is leading the world in the production and refining of natural gas and oil which is boosting our economy, keeping energy affordable for consumers and benefitting American workers,” said API Director for Tax Policy Stephen Comstock. “Unfortunately, the current trade policies being pursued by this Administration run counter to enhancing our energy dominance throughout the world.
“We understand the need to curb discriminatory trade practices, but these broad, additional Section 301 tariffs currently being considered would likely slow U.S. natural gas and oil production, threaten jobs in our industry and hurt consumers.
“China is currently the third largest importer of U.S. LNG and those export amounts have been increasing to match China’s rising demand for natural gas. The U.S. is one of the world’s main LNG suppliers, but other countries are capable of supplying China – including Australia, Qatar, Malaysia and Russia. This trade dynamic suggests that additional tariffs by the Chinese on U.S. LNG will hurt the U.S. more than it hurts China and naturally incentivise other LNG suppliers to fill this market.”
For more information, visit: www.api.org