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A Delay in China Energy Imports from the USA - a Reality of Trade Disruption

Energy is a highly valuable good. It is crucial to the mainstay and well being of all economies, while being the lifeline of many corporations, their stockholders, workers and home states in the United States (US). Disruptions in energy exports from Texas and other states will create an economic difficulty for state as well as the national economies. 

President Donald Trump's initiated trade war with China has exposed both the US economy and that of China to serious adverse consequences. While both nations had been making remarkable economic strides prior to 2016, Trump's insistence on a nationalistic agenda to appease his political base, has created a dangerous avenue of economic certainty that could force world financial markets and economies into a downward spiral. There could be no winners in any trade war between two such large economies as the US and China. However, there will be a number of losers.

And those losers, along with the average consumers both in the East and in the West, could also extend to farmers and to industrial producers, especially amid new reports that China's largest refiner will delay making any new purchases of US oil. The delay comes as Beijing contemplates tariffs on American crude in reaction to Trump's new round of penalties to raise tariffs to 25 percent on Chinese products. The South China Morning Post reported earlier today that Sinopec's purchase delay comes after the largest Chinese oil refiner bought a record volume of energy from the US in June.

China's reported suspension of importing US energy should be a signal to the Trump administration that the economic health of the Republic is on the line and that there is an urgent need to return to rational times of unimpeded international trade. 

If a decline in China energy imports from the US is not sufficient to abate Trump's trade war, then, I fear global economic health will suffer a great tragedy.

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