US and China Discuss Cutting Tariffs on US LNG Exports

The US and China are discussing a potential reduction in tariffs on American liquefied natural gas (LNG) exports to China. This is part of broader energy and agricultural agreements that could be announced during Chinese President Xi Jinping's visit to Washington next week.

The discussion involves cutting tariffs on about $30 billion worth of goods, with the US LNG industry seeking new markets to absorb a wave of new export capacity being built along the US Gulf Coast. China imposed a 15% tariff on US LNG in February 2025, effectively halting trade between the two countries.

The American LNG industry is set for significant expansion, with export capacity growing by roughly 10 billion cubic feet per day through 2027 as new and expanded facilities ramp up. The return of Chinese buyers would give US producers another major destination for their gas at a time when geopolitical upheaval is reshaping global energy flows.