US, China Discuss Cutting Tariffs on American LNG Ahead of Xi Visit
The US and China are negotiating a deal to reduce tariffs on American liquefied natural gas (LNG) exports, according to two sources briefed on the discussions. The potential agreement would be part of a broader package of energy and agriculture agreements that could be announced when Chinese President Xi Jinping visits Washington next week.
The current 15% tariff on US LNG imposed by China in February 2025 has effectively halted trade between the two countries, with only two vessels arriving from the US to China in 2025. However, recent LSEG shipping data suggests that Chinese buyers have started to return to the US market despite the tariff remaining in place.
American LNG producers are seeking new markets to absorb a wave of new export capacity being built along the US Gulf Coast, with years of trade tensions making one of the world's biggest LNG markets less accessible. The return of Chinese buyers would give US producers another major destination for their gas just as geopolitical upheaval reshapes global energy flows.