China halts US gas imports amid escalating trade tensions
Beijing has responded tit for tat in Donald Trump's trade war. In reaction to the steep tariffs, numerous restrictions, and additional fees, China has halted imports of liquefied natural gas (LNG) from the United States.
The import of American LNG to China has been completely halted for over 10 weeks, according to shipping data reported on Friday by the "Financial Times."
Analytics firm Kpler, which monitors shipping data, has confirmed that no cargoes from the U.S. are currently being received in China. As assessed by "Bloomberg," this pause marks the longest break in five years.
"Zero LNG trade between China and the US is likely to continue for the rest of 2025, with a further increase in China’s tariff on US LNG from the previous 15% to 49%, as a counterstrike against Trump’s steepest tariffs," said Wei Xiong speaking to Bloomberg.
It's important to note that Beijing first imposed a 15% tariff on American LNG deliveries on February 10, 2025, in response to American tariffs. This demonstrates how China is capable of turning the tables. At the beginning of the year, Secretary of State Marco Rubio argued that American LNG should be used as "leverage" in negotiations with China—the largest LNG importer globally.
However, through a multi-pronged strategy, Beijing has diversified its sources of natural gas. In 2024, China imported about 85 million tons of LNG. Australia remains the largest LNG supplier to China. Due to long-term contracts, including an agreement with China National Petroleum Corporation (CNPC) to supply 4 million tons annually over 27 years, Qatar holds the second spot. In 2024, Russia also exported 9.1 million tons of LNG to China, along with Malaysia. The U.S. ranked only fifth, sending 4.6 million tons of LNG to China.
Trump seeks new clients
Following the shale revolution, the U.S. has emerged as a major player in the LNG market. It has significantly expanded its infrastructure and capabilities to export gas internationally. The primary LNG export terminals are Sabine Pass in Louisiana, Cove Point in Maryland, and Cameron in Louisiana, along with Corpus Christi and Freeport in Texas.
America continues to hold its status as the world's largest LNG exporter. In 2024, U.S. exports of this resource reached 97.2 million tons. Donald Trump, by liberalizing extraction regulations and annoncing investments in new terminals, aims to significantly increase gas exports.
To secure new contracts and strengthen its market position, Trump used tariff threats by imposing them on almost every country worldwide and then suspended them for 90 days (excluding China). Americans openly state that this suspension is intended to allow time for negotiations where gas contracts will play a crucial role.
The pressure to dramatically increase LNG purchases from the U.S. is targeted at both Europe and several Asian countries. Reports suggest Trump has already spoken with South Korea's interim leader, Han Duck-soo.
Reportedly, Japan, Indonesia, Thailand, and Taiwan are also in line for American energy.
