The Texas Independent Producers & Royalty Owners Association (TIPRO) is encouraged to learn of progress between the United States and China to reach a truce over the trade war involving the two nations, although the organization still expresses concern and some skepticism regarding a long-term solution. The following statement can be attributed to Ed Longanecker, president of TIPRO:
“As negotiations resume regarding trade matters, TIPRO remains hopeful that leaders of the two countries will agree to a suitable deal officially bringing an end to the ongoing trade war, which has inflicted negative consequences to important sectors of the U.S. economy, including the U.S. oil and natural gas industry.
TIPRO has vocalized concerns over the trade war since the Trump Administration first applied tariffs under Section 301 on Chinese imports in 2018. The 18-month long trade war has led to retaliatory tariffs placed against American-made products, including energy resources produced in the United States. As recent as this past May, the Chinese Finance Ministry announced it was increasing levies on U.S. liquefied natural gas (LNG) exports from 10 percent up to 25 percent beginning on June 1, 2019. China was the third-largest buyer of U.S. LNG before the trade war started, but now we are lucky if they rank in the top 25. And though the Chinese government has not yet applied tariffs to imports of U.S. crude, U.S. oil exports to China also have essentially dried up.
TIPRO hopes the Trump Administration will achieve a fair deal with China bringing a resolution to the trade war and terminating tariffs against U.S. energy products.”