Geopolitical tensions lead to longest gap in US-China LNG trade

BEIJING: China has not imported liquefied natural gas (LNG) from the United States for the past 60 days, marking the longest hiatus in five years. This disruption comes as relations between Beijing and Washington deteriorate, prompting Chinese buyers to seek alternative sources for their shipments. During Donald Trump’s first presidential term, there was a similar absence of US LNG shipments to China for approximately 400 days, lasting until April 2020.

According to Wei Xiong, head of gas research at Rystad Energy, it is expected that the trade gap between China and the US in LNG will persist throughout 2025. She noted that China’s tariff on US LNG is set to rise from 15 percent to 49 percent in retaliation for the tariffs imposed by Trump. “We anticipate an increase in reselling activity by Chinese companies during this period,” she stated.

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The ongoing geopolitical tensions are suggesting a separation between the largest seller and buyer of LNG globally. In February, Beijing imposed a 15 percent tariff on US LNG in response to American trade policies, with further Chinese tariffs on all imports from the US being introduced last week, intensifying the situation.