China's imposition of tariffs on US energy imports as a countermeasure to US tariffs on Chinese products could lead to major changes in the geography of global liquefied natural gas (LNG) trade, according to a Bloomberg report.
Chinese LNG buyers, who have long-term contracts with American counterparties, may decide to resell gas supplied by the US at a more attractive price to importers in other regions, including Europe. Citing sources among traders. Some companies in China are already negotiating with their partners in Asian and European countries to exchange gas purchased in the United States for supplies from other countries.
According to Sol Kavonic, an analyst at the research platform MST Marquee, such a change in the direction of trade flows could lead to a “general increase in market prices“. In addition, as Bloomberg writes, Chinese companies are unlikely to participate in projects in the United States as long as tensions in trade relations between the two countries continue. This will hit US exporters of liquefied natural gas, which are seeking to attract buyers to help finance the project.
Earlier, the State Council of the People's Republic of China issued a decree according to which, from February 10, 2025, the country will introduce tariffs on imports of American energy resources. Oil will be subject to a 10% tariff, coal and LNG - 15%. In addition, a 10% tariff will be imposed on American subcompact cars, pickup trucks and agricultural machinery. The Chinese embassy in Washington called the trade countermeasures against the United States fair and justified. Beijing also invoked the World Trade Organization's dispute settlement mechanism.
The trade turnover between China and the United States amounted to 688.28 billion USD in 2024. At the same time, supplies from the United States to China amounted to 163.62 billion USD. The United States is not the main supplier of energy resources to China. Supplies of American oil in monetary terms amounted to 6 billion USD, LNG - 2.4 billion USD, and coal coke - 1.8 billion USD.