In the on-going trade battle between the U.S. and China, energy is one of the few sectors that was excused from the massive tariffs.
On September 20, it was revealed that China would be placing a 10% tariff on natural gas from the United States. Of course, this is a significant tariff, but much less than China originally intended.
During heated retaliations on either side, China claimed it would propose a 25% tariff on liquified natural gas, otherwise known as LNG. This was amidst the $60 billion worth of tariffs levied on U.S. goods in China. By comparison to other items on the list, LNG got off scot-free.
“Some potential exporters and financiers have expressed concern that the US may rescind or revoke LNG export authorization. Let me be very clear that these concerns are unfounded,” claims Steve Winberg, assistant secretary for fossil energy for the U.S. Energy Department.
China is currently the top importer for crude oil in the world but only 2% of their crude oil comes from the United States. On top of that, China imports about 4% of its LNG from the United States.
Amidst all the panic regarding trade tariffs, energy is seemingly the only equal ground that the U.S. and China are able to meet upon. Barry Worthington, the USEA Executive Director, thinks the trade dispute will not last long.
“The industry in the US and China has developed a good professional relationship through the forum. … They have become not only professional colleagues but also friends. There are awkward moments and situations sometimes, but at the end of the day, they are still friends,” Worthington says.
With the new tariffs in place, however, we might see our energy bills go up as winter approaches. Nearly 90% of new homes in the U.S. are equipped with ducted HVAC systems. For homes that utilize older models, prices can be even higher.
This isn’t good for the average household. An estimated one-third of homes across the country have difficulty paying their energy bills, with Hispanics and minority groups being hit the hardest.
Among the households that are currently struggling to pay bills, over 10% of these homes are keeping their home’s temperature at unsafe or unhealthy levels, especially for children who reside in around 25% of these homes.
For these U.S. households, many need additional assistance to survive in the summer and winter.
Even though new HVAC units are more efficient today than ever, many people cannot afford to purchase new ones. Improper attic insulation may also result in money lost; the proper insulation can save the average home between 10 and 50% on energy bills alone.
For those who rely on weatherization programs to properly insulate homes in need, many of these programs are unresponsive.
In conjunction with the new tariffs, prices may go up for everyone this fall and winter. Even though the trade dispute isn’t expected to last for the long term, taking care of those in need should be a top priority in the meantime.