US-China Trade War Disrupts Global LNG Flows

The US-China trade war has led to a halt in Chinese imports of US LNG, as both countries imposed steep tariffs—125% by China and 145% by the US—reducing US LNG's competitiveness in the Chinese market. Chinese buyers are diverting contracted US LNG cargoes to Europe and seeking alternative suppliers, including signing new deals with Abu Dhabi National Oil Co. (Adnoc). The escalating tensions have increased price volatility and supply uncertainty in the global LNG market. Arbitrage opportunities have emerged, with US LNG shipments now commanding higher prices in Asia than in Europe due to Pacific Basin supply disruptions and weak European demand. Other Asian nations and companies are moving to capitalize on the shifts in US LNG trade, while industries such as home appliances consider production changes or price hikes to offset tariff impacts. President Trump has indicated that tariffs could eventually decline, but no immediate resolution is in sight.