US, China Discuss Cutting Tariffs on US LNG Exports

The US and China are in discussions to reduce or eliminate China's tariffs on American liquefied natural gas (LNG) as part of a broader package of energy and agriculture agreements.

The potential relief on US exports of LNG is being discussed alongside a framework under which the US and China would each cut tariffs on about $30 billion of goods, according to two people briefed on the discussions.

China imposed a 15 percent tariff on US LNG in February 2025, effectively halting the US-China LNG trade. American LNG producers are seeking new markets as they enter a major expansion phase with export capacity set to grow by roughly 10 billion cubic feet per day through 2027.

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. China is the world's largest LNG importer and the US is the world's largest LNG exporter, giving the two countries an economic incentive to restore a trade relationship that was rapidly expanding before the tariff dispute.