China Seeks LNG Trade Revival with US Amid Tariff Tensions
China's leader Xi Jinping is expected to arrive in Washington this week with an offer that could score points with the Trump administration. The US and China can revive a $6 billion-a-year trade in liquefied natural gas, which has been frayed since February 2025 due to tariffs imposed by both sides.
China is the top buyer of US LNG, but it stopped importing US gas after President Donald Trump began an aggressive tariff campaign. Chinese companies have continued to meet their contractual obligations, but they have resold LNG shipments to buyers in Europe and Asia rather than paying the 15% levy to bring them home.
The value of restored LNG ties with China would go beyond addressing the trade imbalance, as it could underpin the sustained growth of the US LNG industry. Resuming LNG trade between the two countries is a relatively minor concession for Beijing, but it's useful given traffic constraints around the Persian Gulf and limited supply from Qatar.
For the Trump administration, reviving this trade would be an eye-catching win, especially considering that US producers are expanding and need fresh commitments. LNG contracts typically span decades, with existing Chinese contracts adding up to roughly 14 million tons a year of LNG or about $6 billion at long-term prices.