Middle East Emerges as Possible Energy Winner in U.S.-China Spat
- Region can replace U.S. polyethylene to China: Goldman Sachs
- China may turn to Iran to replace U.S. propane gas supply: FGE
Polyethylene terephthalate bottle caps
Photographer: Dario Pignatelli/Bloomberg
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The Middle East is emerging as a potential beneficiary of the brewing trade war between the U.S. and China as the Asian nation strikes back with retaliatory tariffs on American petrochemical products.
If China goes ahead with its proposal to slap a 25 percent tariff on polyethylene and liquid propane, which were among 106 American goods targeted, buyers in the Asian nation may look elsewhere for alternatives to pricier U.S. supplies. And the energy-rich Middle East with plenty of petrochemical supplies looks well-suited to meet the substitution requirements.