The first commodities to be hit by the official opening of a sino-us trade war are crude oil and soybeans.
The United States imposed a 25 percent tariff on imports of 818 categories of Chinese goods worth $34 billion in the first batch of goods on the list from 12:01 Beijing time on July 6, xinhua reported.China retaliated by imposing a 25 per cent tariff on imports of us goods of the same size on the same day.China imposed tariffs on some imports from the United States at 12:01 Beijing time, according to the head of customs administration's customs administration.
Both the United States and China have also released a second list of goods that would be subject to tariffs, involving $16 billion each.That would hit U.S. energy exports, such as coal and crude oil.It is not clear when these measures will take effect.
The tit-for-tat measures have escalated a trade dispute between the us and China, and global commodity markets have become increasingly involved.The following are the markets affected by the tariff measures already adopted and planned:
A record number of us crude oil is flowing to China, and China's plans to impose tariffs on us crude could cut off a new way out for us exporters of growing crude.
A total of 22.6 million barrels of crude oil from nine ships in Texas and Alaska will arrive in the next five weeks, worth about $2 billion, according to Thomson Reuters trade flow data.
That is equivalent to about 700,000 barrels a day, or 8% of China's daily imports, a huge amount for the new us.
If import tariffs are imposed, us crude will be less competitive than other crude, potentially reducing Chinese purchases and forcing us crude companies to seek other buyers.
Energy consultants Wood Mackenzie, said the global oil market is relatively abundant supply, the United States "will be difficult to find alternative markets so much as China," for Chinese buyers of overseas oil sales proportion of 20% in the United States.
China may seek to replace U.S. crude imports from Russia or Saudi Arabia.Russia and Saudi Arabia recently announced plans to boost output.
In other energy products, China has avoided taxing us liquefied natural gas (LNG) but could be a potential weapon if the trade war with the us deteriorates.
But if there is a second round of tariffs, coal could be the target.
It will not be hard for China to replace us coal imports elsewhere, but the loss of the us, the world's largest importer of coal, will frustrate businesses in West Virginia.The state strongly endorsed Mr Trump in the 2016 presidential election.