# Wood Mackenzie on China's new retaliatory tariff on US LNG

> Wood Mackenzie says China was the second-largest buyer of US LNG in the 12 months to June 2018, but Chinese purchases have fallen as the trade dispute escalated. China's retaliatory tariff on US LNG is 10%, lower than the 25% first proposed in August. Winter cargo purchases are largely complete, so the short-term market impact is seen as limited.

- Date: 2018-09-19 · published 2018-09-19T12:00:00.000Z
- Category: trade · region China · magnitude medium
- Page: https://feedsoft.ai/events/63218-wood-mackenzie-on-china-s-new-retaliatory-tariff-on-us-lng
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Lost Chinese demand for US LNG could weigh on US export economics and new project contracting. Chinese buyers may pay a premium of up to 10% for non-US supply if they still need spot cargoes.

## Read by commodity

- NATGAS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2020-03-10 | [US LNG developers try to ride out market turmoil with China's door shut \| S&P Global](https://feedsoft.ai/events/54313-us-lng-developers-try-to-ride-out-market-turmoil-with-china-s-door-shut-s-and-p.md) | +5.3% | -4.2% |
| NATGAS | 2020-05-28 | [U.S. LNG Said Taking 'New Role of Swing Supplier'](https://feedsoft.ai/events/53323-u-s-lng-said-taking-new-role-of-swing-supplier.md) | +4.6% | -7.6% |
| NATGAS | 2021-09-01 | [China's LNG import surge to cool in winter as high prices bite](https://feedsoft.ai/events/45735-china-s-lng-import-surge-to-cool-in-winter-as-high-prices-bite.md) | +9.9% | +28.7% |
| NATGAS | 2020-03-09 | [Force majeure notices from Chinese LNG buyers: prelude to a renegotiation? - Oxford Institute for Energy Studies](https://feedsoft.ai/events/54318-force-majeure-notices-from-chinese-lng-buyers-prelude-to-a-renegotiation-oxford.md) | +9.8% | -10.1% |
| NATGAS | 2020-06-22 | [Buyers of US LNG to cancel 40-45 cargoes for August loading - Markets - Business Recorder](https://feedsoft.ai/events/52799-buyers-of-us-lng-to-cancel-40-45-cargoes-for-august-loading-markets-business.md) | -7.6% | +6.2% |

## Sources

- hydrocarbonprocessing.com: https://www.hydrocarbonprocessing.com/news/2018/09/wood-mackenzie-on-chinas-new-retaliatory-tariff-on-us-lng/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.