China Halts Liquefied Natural Gas (LNG) Imports from US

China has ceased all imports of liquefied natural gas (LNG) from the United States, marking a deliberate shift in its energy strategy. The halt comes amid the trade war, intensified by tariffs imposed by the Trump administration, and signals China’s intent to reduce reliance on American energy supplies while strengthening ties with alternative suppliers like Russia.

A Strategic Pivot in Energy Trade

China, the world’s largest buyer of LNG, imported approximately 4.5 million metric tons of the fuel in February 2025, the lowest monthly level since April 2022, according to customs data. Historically, the United States accounted for about 5% of China’s LNG imports in 2024, with exports valued at $2.4 billion.

However, the imposition of a 15% tariff on U.S. LNG by Beijing in February, followed by a further increase to 49% in April as a countermeasure to U.S. tariffs of up to 125% on Chinese goods, has rendered American LNG uncompetitive in the Chinese market. Chinese buyers, particularly state-owned firms and city-gas distributors, have begun reselling U.S.-sourced cargoes to Europe and other Asian markets, where prices remain more favorable.

The cessation of U.S. LNG imports is not merely a reaction to tariffs but part of a broader strategy to diversify energy sources. China has signaled plans to increase LNG imports from Russia, with Ambassador Zhang Hanhui noting strong demand from Chinese buyers for Russian supplies.

Russia, already the third-largest LNG supplier to China after Australia and Qatar, is poised to capture a larger share of the market, particularly as discussions around the Power of Siberia-2 pipeline progress. This shift could reshape global energy flows, with ripple effects for both producers and consumers.

Implications for the U.S. Energy Sector

For the United States, the loss of China as an LNG market poses challenges for energy companies, particularly in states like Texas and Louisiana, where LNG export facilities have expanded rapidly. In 2024, the U.S. was the world’s largest LNG exporter, shipping out volumes worth billions annually.

While China’s share of U.S. LNG exports was relatively small, the abrupt halt could exacerbate concerns about market stability, especially if other countries follow suit or if global demand softens. Analysts suggest that U.S. producers may redirect cargoes to Europe, where demand remains robust, but this could depress prices and squeeze profit margins.

The broader economic impact extends beyond LNG. The Trump administration’s aggressive tariff policies, aimed at reviving domestic industries like shipbuilding, have prompted retaliatory measures from China, including new export controls on critical minerals such as tungsten and molybdenum, used in defense and clean energy technologies.

These tit-for-tat actions risk fragmenting global trade into competing blocs, with the U.S. and its allies on one side and China and the so-called Global South on the other.

China’s Energy Independence Push

China’s decision to halt U.S. LNG imports aligns with its long-term goal of reducing dependence on foreign energy, particularly from geopolitical rivals. The country has invested heavily in domestic renewable energy and natural gas production, while securing long-term supply deals with countries like Qatar and Malaysia.

Beijing’s tariffs and import bans also serve as a warning to other nations considering alignment with U.S. trade policies. By flexing its muscle as the world’s largest manufacturing nation and a dominant player in green technology supply chains, China is positioning itself to weather the trade war while exerting influence over global markets.

However, this strategy is not without risks. China’s economy faces headwinds, including a property sector crisis and weakening domestic demand, which could constrain its ability to absorb higher energy costs. Redirecting LNG imports to Russia or other suppliers may also entail logistical challenges and higher prices, particularly if global supply chains remain volatile.

A Global Economic Fault Line

The halt in U.S. LNG imports is a microcosm of the broader U.S.-China trade war, which now threatens to slow global growth. The International Monetary Fund estimates that the U.S. and China together account for 43% of the global economy in 2025.

A protracted conflict risks pushing both economies toward recession, with cascading effects on global investment and trade. For instance, U.S. tariffs on Chinese goods could increase consumer prices in America, while China’s retaliatory measures may hurt U.S. agricultural and energy exports.

Moreover, the energy sector decoupling could accelerate the formation of two distinct trading blocs. The U.S. may deepen ties with allies like Canada and the European Union, while China strengthens partnerships with Russia, Brazil, and other BRICS nations. This bifurcation could disrupt supply chains for critical commodities, from rare earths to semiconductors, and complicate efforts to address global challenges like climate change.

As the trade war intensifies, the halt in U.S. LNG imports serves as a stark reminder of the stakes involved. For China, it’s a calculated move to assert economic sovereignty and counter U.S. pressure. For the United States, it’s a challenge to adapt to a rapidly shifting global energy landscape. Both nations face difficult choices: escalate the conflict at the risk of mutual economic harm or seek a path toward de-escalation.

Subscribe to Notifications