US and China Discuss LNG Tariff Cut Ahead of Xi Jinping's Washington Visit
Chinese and US officials are discussing a possible reduction or removal of Beijing's 15% tariff on American liquefied natural gas (LNG) ahead of President Xi Jinping's visit to Washington. The talks are part of broader negotiations between the two countries, which could include energy and agricultural arrangements.
The tariff was imposed in February 2025 as part of China's response to US tariffs on Chinese goods. As a result, direct trade between the two countries largely ceased, with US LNG exports to China falling sharply from 212.8 billion cubic feet in 2024 to just 546 million cubic feet in 2025.
However, with new and expanded terminals ramping up production, US LNG exports have increased, averaging 17.4 billion cubic feet per day during the first half of 2026, a 23% increase from the same period last year.
The potential tariff reduction or removal could make US LNG more commercially viable for Chinese buyers, potentially reopening a trade route that has been largely inactive since the tariff was imposed.