The latest trade conflict between China and the U.S. may take some twists and turns very soon. The American government recently took a drastic step by imposing tariffs on imports from China. In retaliation with the step, the Chinese authority also released a list of U.S. products which will be imported with high tariffs. There is also high-chances of China's imposing duties on U.S. Oil imports.
Sources suggest that the U.S. government led by Donald Trump has already identified roughly 1100 Chinese imports to be tariffed under this new proposition. While addressing the step, Donald Trump stated that it will be an attempt to accomplish fairer trade transactions with China. Trump's attempt to impose duties is expected to turn into a reality on July 6th, 2018 as an officially declared effective date of the same.
However, the Chinese government also didn't choose to remain silent on this step. Soon after the unveiling of the taxation proposal on Chinese imports made by the U.S. government, China authorities backfired with the release of a list of nearly 600 U.S. imported goods to be tariffed soon.
As a result of this conflict, economists, and market experts started to believe that an all-around trade war between China and the U.S may be on its way to happen soon. However, the recent updates put forward by Reuters suggest that China may also impose tariffs on oil imported from the U.S., a trade business between the two nations, which is not more than two years of age and has been accumulating nearly $1 billion per month.
This announcement may not be a good news for the well known U.S. based oil producers such as ExxonMobil and Chevron, as the companies seem to pull down there share price by 1 to 2 percent since Friday. Also, the U.S. crude oil prices were slashed by five percent since that time. Experts have already started criticizing and denoting this trade battle as a huge loss to both the countries' economy.
While addressing this conflict between China and the U.S., Stephen Innes, the head of trading for Asia/Pacific at futures brokerage OANDA said: "This escalation of the trade war is dangerous for oil prices," "Let's hope cooler heads prevail, but I'm not overly optimistic," he further hoped.
However, John Driscoll, director of consultancy JTD Energy Services analyzed this conflict as an open opportunity for the Iranian's to take over the majority of oil supplies in China. He said: "The Chinese may just replace some of the American oil with Iranian crude." Now, it is to see, how both the nations come to a conclusion in this trade battle.
