US, China Seek Tariff Relief on American LNG Ahead of Xi Visit

The US and China are in talks to reduce tariffs on American liquefied natural gas (LNG), according to two people briefed on the discussions. This plan is part of a broader package of energy and agriculture agreements that could be announced when Chinese President Xi Jinping visits Washington next week.

The potential relief on US LNG exports comes as China, the world's largest importer of LNG, has imposed a 15% tariff on US LNG since February 2025. This effectively halted the US-China LNG trade, with only two vessels arriving in China in 2025 after Beijing implemented the tariff.

The discussions aim to stabilize trade ties ahead of a September 24 meeting between Trump and Xi. American LNG producers are seeking new markets to absorb a wave of new export capacity being built along the US Gulf Coast, which is entering 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 just as geopolitical upheaval is reshaping global energy flows. This could help underpin demand for projects now under construction and those seeking financing and long-term customers.