Trump-Xi Talks in Washington Could Revive $6 Billion US LNG Trade With China

Chinese leader Xi Jinping arrives in Washington this week with a potential concession: reviving roughly $6 billion a year in US liquefied natural gas trade, stalled since February 2025 when Beijing retaliated against Trump's tariffs with a 15% levy on US energy. China's existing US LNG contracts total about 14 million tons annually, worth some $6 billion at long-term prices. Since the tariff, Chinese firms have resold US cargoes to Europe and Asia rather than pay the levy. Restored trade would boost US producers expanding capacity and offer Beijing supply security as Persian Gulf traffic remains constrained and Qatari volumes are effectively cut off. China Gas Holdings agreed last week to buy US LNG for 20 years from 2030. US LNG was 12% of China's imports at its 2021 peak, and US export capacity is set to double by decade's end.