CHINA has suspended all liquefied natural gas (LNG) imports from the United States (US) for over 10 weeks.
The Financial Times reports on Friday, April 18, that shipping data showed no LNG shipments had taken place between the US and China since a 69,000-tonne tanker from Corpus Christi, Texas, docked in China’s Fujian province on February 6.
The report revealed that a second vessel originally destined for China was rerouted to Bangladesh after it failed to arrive before Beijing’s 15 per cent tariff on US LNG took effect on February 10.
The recent 49 per cent tariff hike on Chinese imports imposed by Trump has effectively priced US gas out of the Chinese market.
The ICIR reported that in February, Trump started initiating a trade war with major trading partners by raising import tariffs on 50 countries, causing turmoil in global markets, stoking fears of a recession, and wiping out trillions of dollars in market value from major companies.
China, Washington’s top economic rival but a major trading partner, is the hardest hit after retaliating against the US, with tariffs imposed on its products last week now reaching a staggering 104 per cent.
Earlier that week, Trump announced a 90-day tariff pause for countries that had not retaliated against his country’s tariffs, including Nigeria, but confirmed that China would not be spared, raising duties on Chinese imports to 104 per cent.
Responding, Beijing announced an increase in tariffs on imports from the US to 125 per cent two days later.
China’s Ministry of Finance said this would be the last time China would match further US tariff hikes.
However, Trump announced that his administration was working on “tailored deals” with trading partners, emphasising that allies such as Japan and South Korea would be given priority.
As a result, Trump’s administration had talks with Japan on Tuesday, April 15.
The ICIR reports that the current freeze in the US LNG mirrors a previous suspension during Trump’s first term, which lasted for more than a year.
Experts have warned that the renewed blockade could have a long-term impact, as it drives China to strengthen its energy partnership with Russia and creates uncertainty around the future of major LNG infrastructure projects in the US and Mexico.
“There will be long-term consequences,” said Anne-Sophie Corbeau, a gas specialist at Columbia University’s Centre on Global Energy Policy.
“I do not think Chinese LNG importers will ever contract any new US LNG.”
After Russia invaded Ukraine, China sharply cut back on its LNG imports from the US.
Meanwhile, Chinese companies chose to resell US LNG cargoes to Europe, taking advantage of higher prices in that market.
In 2024, just six per cent of China’s LNG imports came from the US, a drop from 11 per cent in 2021.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.