US and China Consider Cutting LNG Tariffs Ahead of Trump-Xi Meeting

US and China are negotiating to scrap or lower tariffs on US liquefied natural gas (LNG) exports, which could boost trade between the two countries. This potential agreement may be part of a broader package of energy and agricultural deals that will be announced during Chinese President Xi Jinping's visit to Washington.

The current tariff tensions halted major LNG shipments between the two countries, with China imposing a 15% tariff on US LNG in February 2025. However, recent months have seen several US LNG cargoes arrive in or bound for China, indicating that Chinese buyers are returning to the market despite existing tariffs.

US LNG producers are seeking new markets as export infrastructure expands along the Gulf Coast, with capacity expected to increase by approximately 10 billion cubic feet per day by 2027. The return of Chinese buyers could give US producers another major outlet for their supplies and support demand for projects under construction or seeking financing.