US-China Trade Talks Focus on Rolling Back LNG Tariffs

Trade officials from the US and China are negotiating a possible rollback of Chinese tariffs on American liquefied natural gas (LNG) as part of a broader $30 billion trade package. The talks aim to steady economic ties ahead of President Xi Jinping's visit to the US next week.

The 15% tariff imposed by China in February 2025 effectively halted US LNG exports to China, which dropped from 64 vessels in 2024 to nearly zero. However, recent shipments indicate some Chinese buyers are returning despite ongoing tariffs.

US LNG export capacity is set to expand by 10 billion cubic feet per day through 2027, with many projects adding capacity and 24.5 million metric tons of the nearly 100 million under construction still uncontracted.