Key facts
- US and China are discussing reducing or eliminating Chinese tariffs on US LNG.
- The potential tariff relief is part of a broader package of energy and agriculture agreements.
- China imposed a 15% tariff on US LNG in February 2025 in retaliation for US duties on Chinese goods.
- The US LNG industry is entering a major expansion phase, with export capacity set to grow significantly through 2027.
- US LNG exports to China fell from 64 vessels in 2024 to effectively zero in 2025 after Beijing imposed the tariff.
- Republican China committee chair John Moolenaar urged President Donald Trump to take a tough stance with Xi Jinping.
The US and China are in discussions to potentially reduce or eliminate Chinese tariffs on American liquefied natural gas (LNG) as part of a broader package of energy and agriculture agreements. This move could signal a stabilization of trade ties ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping on September 24.
China had imposed a 15% tariff on US LNG in February 2025, which effectively halted bilateral trade. The US LNG industry is currently undergoing a significant expansion, with substantial new export capacity expected to come online through 2027. The return of Chinese buyers would provide a crucial market for this new capacity, especially as geopolitical shifts reshape global energy flows.
Prior to these discussions, Republican China committee chair John Moolenaar urged President Trump to adopt a firm stance during his summit with Xi Jinping, warning against concessions and advocating for tighter technology restrictions on China. Meanwhile, US Treasury Secretary Scott Bessent is scheduled to discuss AI and rare earths with China's He Lifeng. Executives from prominent Chinese companies, including BYD, Xiaomi, and CATL, as well as Nvidia CEO Jensen Huang, are also expected to attend events surrounding the summit.