US-China Discuss Cutting Tariffs on American LNG Ahead of Xi Visit

The US and China are discussing a potential plan to reduce or eliminate China's tariffs on American liquefied natural gas (LNG) as part of broader energy and agriculture agreements. The discussions aim to stabilize trade ties ahead of Chinese President Xi Jinping's visit to Washington next week.

China imposed a 15% tariff on US LNG in February 2025, effectively halting the US-China LNG trade. American LNG producers are seeking new markets to absorb a wave of new export capacity being built along the US Gulf Coast.

The US and China would each cut tariffs on about $30 billion of goods as part of the agreement. The return of Chinese buyers would give US producers another major destination for their gas, potentially helping underpin demand for projects now under construction and those seeking financing and long-term customers.