China has formally discontinued buying liquefied natural gas (LNG) from America after slapping new tariffs on US fossil fuel imports. This action brings new tension to the already strained trading relationship between the world’s largest two economies.
Beijing’s 15% Tariff Seals the Deal
China imposed a 15% tariff on U.S. LNG on February 10, 2025. The response was swift. Imports ground to a halt. Ship tracking data reported American LNG tankers ceasing to sail towards China. Only a few that were underway were forced to change course. One arrived and offloaded just in time. Another went to Bangladesh to save the expense. That’s how rapidly everything shifted.
U.S. Losing Share in China’s Energy Market
American LNG was already only 3% of China’s total gas imports in the past year. The recent action may cut that in half to zero. Chinese customs figures indicate that LNG imports from the U.S. were already falling between November and January. Now, they’ve probably fallen to zero.
Meanwhile, Russia is stepping in. Last year, China bought four times more LNG from Russia than from the United States. As U.S.-China ties fray, Russia becomes the go-to supplier. For Moscow, it’s a strategic win. For Washington, it’s a warning sign.
The Trade War’s Energy Front
This is not merely about gas. It is about leverage. President Trump’s original 10% tariffs on Chinese goods precipitated retaliation. Beijing retaliated against American fossil fuels in turn. LNG, a rapidly growing U.S. export, was caught in the middle. What was once a booming opportunity now appears to be a closed door.
Redirection, Not Reduction
Interestingly, the gas did not go to waste. Chinese energy companies, knowing about the impending tariffs, started selling their U.S. LNG imports to Europe. The market adjusted. But U.S. exporters lost direct access to a massive buyer.
Increasing China-Russia Energy Relations
The vacuum created by the U.S. was not around for long. Russia moved in with additional LNG supplies and deeper energy deals. As Beijing-Moscow political ties tighten, energy commerce is becoming their economic cement.
This is not a one-off transition—it appears to be a new normal. With Chinese LNG demand remaining high, Russia’s position is getting more robust. The U.S. is getting more restricted and it will be interesting to see what future has.
Long-Term Consequences for the U.S.
The past decade was for the U.S. LNG market. It expanded very quickly. China was perceived as a long-term ally due to its size and energy demands. But now that Beijing has closed the door, U.S. producers are forced to rely more on Europe and emerging economies.
Losing China isn’t just about reduced sales. It’s about reduced influence. Energy isn’t merely about cash—it’s about power. And the U.S. just lost a little of both in Asia.
America’s Global LNG Game
All hope is not lost. Europe’s demand for LNG is increasing. It is mainly increasing due its ongoing efforts to reduce Russian gas dependency. Germany and Poland have both increased imports from America. These markets, however, can’t fully compensate for China.
The LNG market is still unstable, and politics tend to dominate supply chains as much as price does.
The Decoupling Continues
China’s move to suspend LNG imports from the U.S. is a sign of a broader trend—economic decoupling. Both countries are gradually unpeeling from one another, looking for other partners and greater supply chain control.
It’s not only gas. It’s chips, automobiles, technology, and even energy infrastructure now. Each divergence undermines interdependence. Each tariff escalates the stakes.
What’s Next?
At least for now, China gives no indication of lifting the 15% tariff. The U.S. has yet to respond with new countermeasures, but that may be forthcoming. The world’s energy markets will be watching closely.
Through April 2025, China has halted purchases of liquefied gas from the US. And it may remain so for a long time.
