China hits back at proposed US increased tariffs.
China has announced that 44 industrial and chemical raw materials manufactured in the US - including finished lubricants and base oil stocks - may be hit by increased tariffs. The country's Ministry of Finance is set to hike taxes by 25% in retaliation against US proposals to hit Chinese products which a similar tax rise.
The products on China's list include including butane, polycarbonate, epoxy, acrylonitrile and the tariffs would apply to products originating in the United States, but not those manufactured by US companies in other countries.
According to Lube Report and based on stats from the U.S. Energy Information Agency, the US exported 825,000 barrels of finished lubricants and base stocks to China (including Hong Kong) in 2017, making it the 16th largest destination for those materials.
No date has been set for the Chinese action, with some observers hoping the two governments will negotiate to avoid a tariff battle.