>> Secretary of State Mike Pompeo, Monday, taking a stand in favor of President Trump's decision to slap tariffs on $50 billion worth of Chinese goods. Describing it as the right way to deal with China's trade abuses, claiming economic security and national security go hand in hand.
Chinese leaders, over these past few weeks, have been claiming openness and globalization. But it's a joke. Let's be clear. It's the most predatory economic government that operates against the rest of the world today.>> But the growing trade spat between Washington and Beijing could have an unexpected casualty, lucrative U.S. oil exports.
China's threatening to retaliate with tariffs of its own on U.S. commodities including oil. According to data compiled by Reuters, 45% of all US oil exports are shipped to China, translating into the potential loss of a lot of dollars, says Reuters energy editor, David Gaffen.>> In dollar terms it's something like a billion dollars a month.
And that would be expected only to increase because of the forecast that people had that China would continue to buy crude oil from the United States.>> Experts point out, when it comes to oil, China has the upper hand.>> China could defy the United States and decide to just keep importing oil form Iran as well.
And that would really kind of push back against this move both in terms of the trade war and in terms of the expectation that the United States has leaned on OPEC to increase supply. And the Iran Nuclear Agreement ending, and the United States pressuring countries to stop taking Iranian oil.
>> And with OPEC likely to raise production at a meeting this week, China will have an easier time finding a replacement for US oil than the US will have finding new customers.