December 16, 2019 / 7:25 AM / 2 months ago

Factbox: How China tariffs on U.S. commodities, energy stand after 'phase one' trade deal

BEIJING/SINGAPORE (Reuters) - China and the United States have agreed terms of a “phase one” trade deal under which Washington reduced some tariffs and Beijing cancelled retaliatory duties that were previously scheduled to take effect on Dec. 15.

FILE PHOTO: A general view shows groundwork for new gas storage tanks at PetroChina-controlled Caofeidian gas terminal in Tangshan, Hebei province, China October 17, 2017. Picture taken October 17, 2017. REUTERS/ Aizhu Chen

Before Sunday’s deal, U.S. corn, sorghum, wheat, undenatured ethanol, and refined copper cathodes had faced an additional tariff of 10% an imports into China. Propane, cotton, aluminium scrap, copper scrap and rare earth magnets were all set for an additional 5% duty.

Below is a list and timeline showing how China’s tariffs on key U.S. commodities and energy items stand after the “phase one” accord.

Crude oil

Beijing imposed a 5% tariff on U.S. crude oil shipments from Sept. 1, the first time U.S. oil had been targeted since the trade war between the world’s top two economies started more than a year ago. The 5% tariff was not affected by Sunday’s deal.

China, the world’s biggest crude importer, has sharply lowered U.S. shipments from a record high hit last year. Chinese customs data showed imports in the first 10 months were halved year-on-year to 146,275 barrels per day.


China removed an additional 5% tariff on U.S. propane shipments which was set to take effect from Dec. 1. A 25% duty that Beijing imposed on U.S. propane on Aug. 23, 2018 remains in place.

Chinese firms process U.S. propane into petrochemicals such as propylene. Imports last year were worth an estimated $2 billion.

Liquefied natural gas (LNG)

China imposed a 10% punitive tariff on U.S. LNG shipments in September 2018, raising it to 25% in June. LNG duties were not affected by Sunday’s deal.

Imports of the super-chilled fuel in the first 10 months of 2019 shrank 87.2% on the year to 258,955 tonnes, according to Chinese customs.

Methanol, ethylene glycol (MEG)

China imposed tariffs of 25% on U.S. methanol and MEG in June this year. These were not affected by Sunday’s deal.


No additional duty had been scheduled to come into effect on Dec. 15.

A 25% tariff on soybeans in July 2018 had halted all buying by commercial buyers, but Chinese crushers went back to the U.S. market following a trade truce leaders in the two countries agreed in December last year. An additional 5% duty came into effect in September. The Chinese government has given tariff exemptions to some U.S. soybean imports.

China bought 11.3 million tonnes of soybeans from the United States in January-October, down 31.8% from last year. U.S. has sold at least another 1.5 million tonnes of beans to Chinese crushers since early November


American pork faces total import duties of 72% after including the 12% ‘most-favoured nation’ tariff. These duties were not changed in Sunday’s deal, but Beijing is expected to boost U.S. meat imports into China, where a severe African swine fever disease has decimated the world’s largest pig herd and sent domestic pork prices soaring to record levels.

Scrap metal

An additional duty of 5% on U.S. aluminium scrap, which was to go into effect on Dec. 15, has been cancelled. The material was already affected by an initial 25% tariff in April 2018, following by another 25% hike in August 2018.

Shipments to China were down only 17.3% year-on-year in the first 10 months of 2019, but those of U.S. scrap copper, subject to a 25% tariff since August 2018, crashed by 76.6% over the same period.

Rare earths

Beijing, which this year raised the prospect of restricting rare earth exports to the United States but has not announced any formal measures, removed the extra 5% tariff on imports of U.S. permanent rare earth magnets from December as part of the phase-one deal. There has been a 25% tariff on U.S. rare earth ore imports since June 2019.

Month when April July August Septem June Septem TOTAL TRADE WAR

tariffs became 2018 2018 2018 ber 2019 ber RELATED TARIFFS

effective 2018 2019


Crude oil 5% 5%

Natural Gas 25% 25%

LNG 10% to 25% 25%

Propane 25% 25%

Methanol 10% to 25% 25%


Soybeans 25% 5% 30%

Pork 25% 25% 10% 60%

Beef 25% 10% 35%

Corn 25% 25%

Sorghum 25% 25%

Wheat 25% 25%

Ethanol 15% 25% 40%


Ethanol 0%


Cotton 25% 25%


Aluminium scrap 25% 25% 50%

Copper scrap 25% 25%

Refined copper 10% to 25% 25%


Copper 10% to 25% 25%


Zinc concentrate 10% to 25% 25%

Nickel 10% to 25% 25%


Rare earth 10% to 25% 25%


Rare earth ore 10% to 25% 25%

Reporting by Chen Aizhu, Muyu Xu, Dominique Patton, Tom Daly, Shivani Singh and Hallie Gu; Editing by Kenneth Maxwell

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