The ongoing US-China trade disputes will have a negative impact on industries and jobs associated with energy in the US.

Many US oil and gas companies use Chinese casings and pipes so the tariffs will increase costs for oil and gas companies in US, said Guan Linhua, CEO at Surge Energy America, a Texas-based production and exploration company.

In an escalation of the trade tensions, Washington on May 10, placed additional tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent, and has threatened to raise tariffs on more Chinese imports. 

In response, China raised additional tariffs on a range of US imports, including liquefied natural gas (LNG) imports, on June 1.

According to Guan, the tariff hikes could lead to the cancellation of some multi-million-dollar LNG projects in the US states of Texas and Louisiana, putting US companies in a more difficult situation.

Vessel tracking figures showed that so far this year, only two LNG vessels have gone from the US to China, compared with the 14 vessels in the first four months of 2018.

From February 2016 to July 2018, China was the third biggest import country for US LNG. However, the Asian country has not ranked in the top 15 so far this year.

US energy companies will have to buy their products from somewhere else if they cannot buy from China, while Chinese oil and gas equipment manufacturers and service providers need to find new buyers for their products, said Guan. 

This will have a great impact on both sides in the long run, he added.

Meanwhile, the trade disputes could also have a spill-over effect on other US industries such as transportation.

Texas will see volume drops at its ports, said Charles Knobloch, former chairman of Offshore Technology Conference, an annual event held in the city of Houston.

The Greater Port of Houston is the biggest port in the country because of the foreign waterborne tonnage that is processed there due to massive petrochemical manufacturing activities by nearly 200 private companies.

According to official data, the port has created $801.9 billion in economic value and over $38.1 billion in tax revenue, as well as 3.2 million job opportunities.

Guan and Knobloch are worried that the trade dispute might also put downward pressure on crude oil prices as a slowdown in global economic growth would lead to less demand for oil.

Crude oil prices have plunged in the week ending on May 31, with the price of West Texas Intermediate for July delivery down by 8.75 percent and Brent crude oil for July delivery down 6.11 percent.