Trump-Xi Talks May Unleash $6B US LNG Trade with China

US President Donald Trump and Chinese leader Xi Jinping are expected to discuss a potential deal to revive the US$6 billion-a-year trade in liquefied natural gas (LNG) between the two countries, according to a recent report.

The relationship between the US and China frayed after February 2025 when Trump began an aggressive tariff campaign. Chinese companies effectively stopped importing US gas after Beijing retaliated with punitive levies on US energy, including LNG.

However, Jane Nakano, a senior fellow at Center for Strategic and International Studies, suggests that 'LNG is an apparent area of mutual gain.' Resumed trade would likely underpin the sustained growth of the US LNG industry.

The prospect of a deal to scrap tariffs and revive trade in LNG could be a win for both sides. For Beijing, LNG is a relatively minor concession, while for the Trump administration, it would mean an eye-catching number, LNG contracts typically span decades, at a time when US producers are expanding and in need of fresh commitments.

Chinese buyers would be a boon for American LNG developers and their projects, including the Alaska LNG project backed by Trump. Many new US supply being marketed today will not start until around the end of this decade or the early 2030s.