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Dante Raeburn
China Halts LNG Imports from U.S. Amid Trade Tariff Escalation
China has ceased imports of liquefied natural gas from the U.S. for 40 days due to tariffs imposed amid a trade war. Following a 10% tariff on Chinese imports by the U.S., China retaliated with a 15% tariff on U.S. LNG, leading to a significant realignment of LNG sourcing as China now turns to suppliers in Australia, Qatar, and Russia.
Recently, China has suspended imports of liquefied natural gas (LNG) from the United States for a period of 40 days, amid an intensifying global trade conflict initiated by President Donald Trump. The freeze on purchases was triggered by the additional 10% tariff imposed on all Chinese imports on February 2, which prompted China to retaliate with a 15% tariff on U.S. LNG imports and a reduced tariff on crude oil.
As the world’s largest importer of LNG, China has seen a significant shift in its supply sources, as the U.S. transitioned from the top global LNG supplier to ranking as the fourth supplier to China in 2024. The leading suppliers are Australia, Qatar, and Russia, reflecting a changing landscape in LNG imports. China procured 4.16 million metric tons of LNG from the U.S. in 2024, valued at approximately $2.4 billion according to customs data.
In recent developments, Chinese buyers holding long-term contracts with U.S. LNG producers have begun reselling these agreements to European markets. Moreover, Chinese traders are actively pursuing long-term agreements with gas suppliers in the Middle East and Asia-Pacific regions instead of U.S. companies. This trend signifies a potential realignment in global energy trading dynamics.
The initial agreement between a Chinese entity and a U.S.-based LNG producer, Cheniere Energy Inc., was established in February 2018. Cheniere is recognized as the foremost exporter of LNG in the United States and was the second-largest LNG producer globally last year, as stated on their official website.
In February 2025, the Corpus Christi Stage 3 expansion at the Port of Corpus Christi exported its inaugural LNG shipment. The United States currently maintains seven active LNG export facilities, with additional facilities under construction adding to the country’s LNG export capacity.
On another note, the Trump administration recently granted conditional approval to Venture Global LNG Inc. for the exportation of natural gas from its proposed CP2 LNG export project in Louisiana, valued at $28 billion. This development highlights ongoing advancements in U.S. LNG infrastructure despite current trade tensions.
In summary, China’s cessation of LNG imports from the U.S. underscores the significant impact of trade tariffs on global energy transactions. The U.S. has witnessed a decline in its standing as a key LNG supplier to China, now ranking behind Australia, Qatar, and Russia. Furthermore, Chinese traders are exploring new markets and long-term contracts in the Middle East and Asia-Pacific, illustrating a potential shift in the LNG market landscape. As the U.S. expands its LNG export infrastructure, the future of U.S.-China energy relations remains uncertain amidst ongoing trade disputes.
Original Source: www.freightwaves.com
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