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U.S. Gas Shunned by China as Goldman Sees Swift End to Trade

  • China slaps 10% levy on U.S. LNG instead of threatened 25%
  • Chinese buyers are said to avoid U.S. cargoes on trade risks
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Even with China’s smaller-than-threatened tariff on U.S. natural gas, American cargoes may still be kryptonite for Chinese traders trying to navigate the ongoing trade war.

Chinese buyers will seek to avoid purchasing U.S. liquefied natural gas as long as any tariffs are in place because of the risk that duties may rise further and possibly without warning, according to officials from four importers. While they said they would prioritize cargoes from other suppliers, they couldn’t entirely rule out buying U.S. shipments. The officials asked not to be identified discussing procurement strategy.