China stops purchasing liquefied gas from US and increases imports from Russia - NYT
Photo: China stopped purchasing liquefied gas from the US (Getty Images)
China has completely stopped purchasing liquefied natural gas (LNG) from the United States following the introduction of a 15% tariff on LNG imports on February 10, The New York Times reports.
According to the media outlet, ship-tracking data indicates that Beijing continues to distance itself from the US economy. Data from China’s customs service shows that Chinese imports of LNG from the US had already dropped to low levels between November and January.
At the same time, China has increased its purchases from Russia, which last year delivered four times more liquefied gas to the country than the US did.
Only two LNG cargo ships from the US were en route to China when Beijing imposed tariffs on American fossil fuels in response to the initial round of 10% tariffs on Chinese goods introduced by US President Donald Trump.
According to Belgian energy company Kpler, one vessel arrived in China before the tariffs took effect and unloaded its cargo, while the other was redirected to Bangladesh to avoid the duties.
The outlet notes that Europe’s boycott of Russian natural gas following its full-scale invasion of Ukraine in 2022 has resulted in Russian gas being sold at very low prices, while European companies are paying significantly more for gas from other countries, including the US.
As a result, Chinese companies have had the opportunity to buy large quantities of cheap gas from Russia instead of the US.
The New York Times recalls that US LNG exports to China surged after the signing of a trade agreement between Beijing and Washington in January 2020. That deal included a commitment by China to increase purchases of American gas, though not necessarily for domestic use.
Exports then plummeted in 2022, as US gas was redirected to Europe, where it fetched higher prices following the European decision to stop buying Russian gas.
According to China’s customs administration, the US accounted for just 3% of China’s natural gas imports last year.
Tariff war between the US and China
US President Donald Trump initially imposed additional tariffs of 20% on China, then raised them by another 34%. The US leader increased tariffs each time China announced retaliatory measures.
A few days later, Trump raised tariffs on Chinese goods to 145%, while simultaneously announcing a 90-day pause on tariffs for goods from other countries.
In response, Beijing increased tariffs on US goods to 125%.
Recently, the White House stated that as a result of retaliatory actions against US tariffs, China now faces a tariff on imports to the US of up to 245%.
Later, the Trump administration clarified this statement, explaining that only certain Chinese goods, such as electric vehicles and syringes, are subject to the 245% tariff. This is not a new, broad US tariff imposed on China.
