China’s retaliatory tariffs threaten Louisiana LNG, chemicals

Posted at 10:30 AM, Sep 19, 2018
and last updated 2018-09-19 11:30:34-04

China said Tuesday it will impose 10 percent duties on a host of U.S. products, including liquefied natural gas, threatening a booming Louisiana industry, and chemicals, Louisiana’s third-largest export to China and a major industry statewide, the Advocate reports.

The tariffs on $60 billion worth of U.S. exports to China go into effect later this month. The move came in response to the Trump administration imposing tariffs late Monday on $200 billion worth of Chinese-made goods starting next week.

Louisiana, a uniquely trade-sensitive state, already has seen 25 percent tariffs imposed on major exports like soybeans, and companies building big industrial facilities have complained about rising costs from U.S. tariffs on steel from China and other countries.

The tariffs from China ratchets up pressure on developers trying to build multibillion-dollar liquefied natural gas export facilities, particularly in southwest Louisiana. More than $90 billion in potential investments are planned for Louisiana alone from about a dozen companies. Those firms are competing for long-term contracts from overseas buyers, including from China.

“It’s going to continue to stall the development of LNG facilities in Louisiana until there’s more clarity on the issue,” said David Dismukes, head of LSU’s Center for Energy Studies.

Read the full story at the Advocate.