China · Economy and U.S.-China trade ·

Reuters: U.S. and China discuss LNG tariff cuts; no final deal

Reuters reported on September 18, citing two people briefed on the talks, that the United States and China are discussing reducing or eliminating China's 15% tariff on U.S. liquefied natural gas. Neither government has formally confirmed an LNG arrangement.

Why it matters

If completed, the measure could revive U.S.-China LNG trade after it collapsed following the 2025 tariff, affecting U.S. export projects, Chinese energy procurement and global gas prices. The talks are unfinished, and the rate, product coverage and announcement timing could change.

Full report

Two people briefed on the discussions told Reuters that relief from China's 15% tariff on U.S. LNG is being considered with energy and agricultural agreements and could be announced during Xi Jinping's September 24 visit to Washington. They said the plan was not final. The White House and the Chinese embassy in Washington had not responded to Reuters' requests for comment when the report was published.

China's Ministry of Commerce confirmed publicly on September 10 that the two countries' economic teams were negotiating a reciprocal tariff-reduction framework covering about $30 billion of goods on each side. That statement confirms the broader framework, but it did not say LNG was included or list tariff lines.

China imposed a 15% tariff on U.S. LNG in February 2025. Reuters, citing U.S. government data, said direct U.S. LNG cargoes delivered to China fell from 64 vessels in 2024 to effectively zero in 2025. Several cargoes have recently arrived or are heading to China, while the tariff remains in force.

The U.S. Energy Information Administration said on September 1 that U.S. LNG exports averaged 17.4 billion cubic feet per day in the first half of 2026, up 23% from a year earlier. That official data verifies the market context, not the proposed tariff terms. N Globe marks this report as developing pending formal documents from the two governments.

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