China has halted purchases of liquefied natural gas (LNG) from the U.S. after Beijing imposed a 15 percent tariff on these shipments on February 10, reports The New York Times. Vessel tracking indicates that Beijing continues to decouple from the American economy, and data from the Chinese customs service shows that LNG imports from the U.S. have dropped to a low level from November to January. In contrast, China has ramped up purchases from Russia, which supplied four times more liquefied gas to China last year than the U.S.
This is reported by Kyiv24
Only two cargo ships from the U.S. were en route to China at the time the tariffs were imposed, which was Beijing’s response to the first round of 10 percent tariffs on Chinese goods introduced by the Donald Trump administration. According to data from the Belgian energy company Kpler, one vessel arrived in China before the tariffs took effect and unloaded its cargo, while the other headed to Bangladesh to avoid the tariffs.
Impact of Tariffs on Energy Trade Between the U.S. and China
According to NYT, last year the United States accounted for only 3 percent of China’s natural gas imports. Now these purchases may cease entirely due to the trade conflict.
“China has stopped buying liquefied natural gas from the U.S. after the imposition of a 15 percent tariff.”
At the same time, Europe’s boycott of Russian natural gas following Russia’s invasion of Ukraine in 2022 has led to Russian gas being sold at very low prices. European companies are paying significantly more for gas from other countries, including the U.S., which allows Chinese energy companies to purchase gas from Russia at lower prices instead of American gas.
Before the tariffs were imposed, Chinese energy companies were already significant buyers of American liquefied gas, but they were actually supplying little fuel to China, instead sending it for sale in Europe. On April 9, U.S. President Donald Trump justified his decision to raise tariffs, citing “the disrespect that China shows to global markets.” As a result, tariffs increased to 145%. On April 11, China announced a new increase in import tariffs on American goods – to 125%.