Newly imposed Chinese tariffs to cover US exports worth USD 23.6 billion in 2024: S&P Global Market

The new tariffs, set to take effect on February 10, provide a short window for potential negotiations between the two countries says a report by S&P Global Market Intelligence.

According to the data from S&P Global Market Intelligence, the newly imposed duties cover US exports worth USD 23.6 billion to China in 2024. The affected products include coal, crude oil, passenger vehicles, and agricultural machinery. The tariffs vary by category, with coal and gas facing a 15 per cent tariff, crude oil at 10 per cent, large engine cars and light trucks at 10 per cent, and agricultural machinery also subject to new duties.

US exports of these goods to China have already declined significantly since 2021, the second year of the "Phase 1 Trade Deal."

Liquefied natural gas (LNG) exports to China dropped by 59.8 per cent, while shipments of cars and light trucks fell by 33.0 per cent. The new tariffs could further impact these industries, adding pressure on US exporters.

China's countermeasures appear to follow a strategy of asymmetrical exposure. For example, while China accounted for 11.1 per cent of US coal exports, the US supplied only 3.8 per cent of China's coal imports.

A similar trend is seen in crude oil, where China made up 5.3 per cent of US exports, but the US represented just 1.9 per cent of China's oil imports. This suggests that China has chosen products where it can find alternative suppliers more easily than the US.

The impact on passenger vehicles and agricultural equipment could be more significant. The US supplied 21.6 per cent of China's imported cars and 23.7 per cent of its agricultural machinery, but China has a smaller export market for these products from the US, accounting for only 9.1 per cent of US car exports and 1.5 per cent of agricultural equipment. This imbalance may create economic difficulties for American manufacturers in these sectors.