US and China Revive Talks on Reducing Tariffs on American LNG

The US and China are discussing a plan to reduce or eliminate tariffs on American liquefied natural gas (LNG) as part of broader energy and agriculture agreements. This could be announced when Chinese President Xi Jinping visits Washington next week.

According to people briefed on the discussions, the potential relief on US LNG exports is being considered alongside a framework to cut tariffs on about $30 billion worth of goods. China imposed a 15% tariff on US LNG in February 2025, effectively halting trade between the two countries.

The American LNG industry is expanding rapidly, with new export capacity expected to grow by around 10 billion cubic feet per day through 2027. Restoring trade ties could give US producers another major destination for their gas at a time when geopolitical upheaval is reshaping global energy flows.