US LNG exports to China come to standstill as Beijing imposes tariffs
China has halted imports of liquefied natural gas (LNG) from the US for the past 40 days — the longest break in nearly two years — as escalating trade tensions force Chinese buyers to seek alternative suppliers.
According to ship-tracking data compiled by Bloomberg, this marks the most extended pause since June 2023, per Caliber.Az.
Currently, there are no US LNG shipments en route to China, as confirmed by analytics firm Kpler.
The disruption stems from China’s decision to impose a 15% tariff on US LNG imports starting February 10, a retaliatory measure against broad American tariffs on Chinese exports. This move threatens to sever the link between the world’s largest LNG producer and its biggest buyer, further intensifying the ongoing trade dispute that began under the Trump administration.
Faced with these tariffs, Chinese gas buyers holding long-term contracts with US suppliers are now rerouting shipments to Europe, according to traders familiar with the matter. Meanwhile, firms in China are increasingly hesitant to sign new agreements with US LNG facilities and are turning to suppliers in the Asia-Pacific region and the Middle East instead.
One such shift was evident on March 17 when China Resources Gas International signed a 15-year LNG supply deal with Australia’s Woodside Energy Group Ltd., set to begin in 2027. This marks the first long-term agreement between Chinese and Australian companies in years, following a period of strained trade relations between Beijing and Canberra earlier in the decade.
Beyond trade reconfigurations, China is also working to enhance its energy security by increasing domestic gas production. In the first two months of 2025, China’s gas output rose 3.7% year-on-year, helping to curb its dependence on imports. Additionally, cheaper energy alternatives — such as coal, renewables, and Russian pipeline gas — are further reducing China’s reliance on seaborne LNG.
A similar trade conflict during Donald Trump’s first presidency brought US LNG exports to China to a standstill. While shipments resumed in 2020 and grew significantly — averaging over 400,000 tons per month — the latest round of tariffs is once again disrupting this trade flow.
In January, Secretary of State Marco Rubio suggested that LNG should serve as a bargaining chip in renewed trade negotiations with China. However, Beijing has shown little interest in this approach, raising concerns for US LNG developers seeking long-term contracts to fund new projects.
By Tamilla Hasanova