China’s response to new US tariffs: exclusion of energy products, including LNG

China has announced new fiscal measures in response to the increase in US customs duties, excluding energy products such as liquefied natural gas (LNG) from these measures.

Partagez:

China has implemented new fiscal measures in response to the increase in customs duties imposed by the United States. These measures mainly focus on agricultural products, with additional tariffs ranging from 10 to 15% on imports from the US. This decision follows the rise in US tariffs on Chinese imports, introduced as part of escalating trade tensions.

However, energy products, including liquefied natural gas (LNG), have been explicitly excluded from this set of measures. This exclusion follows the imposition of additional tariffs on US LNG and coal in early February, as well as an increase in duties on crude oil. China’s decision not to apply new tariffs on LNG could have significant implications for the global energy market, given China’s strategic position as a key importer of the product.

The impact of these decisions is already being felt in the volumes of LNG imported from the United States. Before the new tariffs came into effect, China had imported only one LNG cargo from the US, a figure significantly lower than the monthly average of three cargoes observed at the end of the previous year. Chinese companies appear to be diversifying their sources of supply, turning to non-US suppliers in order to reduce their exposure to tariff hikes.

Major Chinese companies in the LNG sector, such as PetroChina, Sinopec, and CNOOC, have long-term contracts for a total volume of 25.6 million tonnes per year. However, imports from the US account for only a small portion of these volumes. In fact, only 4.2 million tonnes of US LNG have been delivered since the contracts began.

Supply strategy and impact on trade flows

In response to changes in tariffs, China is adapting its LNG supply strategy. This shift could disrupt global supply chains, particularly if trade tensions persist and further fiscal measures are implemented. The LNG sector may thus face pressure, with a probable reorientation of trade flows towards non-US suppliers.

Uncertain outlook for US LNG imports

The future of US LNG imports remains uncertain. Observers expect that the evolution of US fiscal policy will play a key role in shaping trade flows in this sector. Chinese importers seem poised to further reduce their purchases of US LNG if these tariff measures remain in place. The coming months will be crucial in observing the impact of these decisions on the LNG market and on international trade relations.

The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.
Hungary, supported by Slovakia, strongly expresses opposition to the European Commission's plan to phase out imports of Russian energy resources, citing major economic and energy impacts for Central Europe.
Israeli military strikes on Iran's Natanz nuclear site destroyed critical electrical infrastructure but did not reach strategic underground facilities, according to the International Atomic Energy Agency (IAEA).
The French president travels to Nuuk on 15 June to support Greenlandic sovereignty, review energy projects and respond to recent US pressure, according to the Élysée.
Kazakhstan has selected Rosatom and China National Nuclear Corporation to build two nuclear power plants totaling 2.4 GW, a decision following a favorable referendum and coinciding with Xi Jinping’s upcoming strategic visit.
Israeli strikes against Iranian nuclear sites disrupt US-Iranian talks on the nuclear deal. Tehran now considers canceling the upcoming negotiation round in Oman, heightening regional economic concerns.
Facing alarming breaches of uranium enrichment thresholds by Iran and explicit existential threats, Israel launches targeted military strikes against Iranian nuclear infrastructure, escalating regional tensions dramatically.
The Kremlin has confirmed that Vladimir Putin aims to help resolve the nuclear dispute between the United States and Iran, leveraging strengthened strategic ties with Tehran.
President Lee Jae-myung adopts an energy diplomacy rooted in national interest, amid a complex international landscape of rivalries that could create challenging situations for the country and its energy businesses.
Paris and Warsaw held a bilateral workshop in Warsaw to strengthen coordination on electricity infrastructure investments and supply security under the Nancy Treaty.
Donald Trump firmly rejects any uranium enrichment by Iran, while Russia affirms Tehran’s right to civil nuclear power, intensifying tensions in negotiations over the Iranian nuclear program.
Syria has signed a $7bn agreement with a consortium of companies from Qatar, Turkey and the United States to rebuild its national power sector.
Friedrich Merz confirmed that Germany would block any attempt to relaunch the Nord Stream 2 pipeline, despite internal calls suggesting a potential reopening of dialogue with Moscow.
A memorandum of understanding formalises energy cooperation between the European Union and the Latin American Energy Organization, including permanent EU participation in the organisation’s governance bodies.
Prime Minister Viktor Orban announced that Hungary would oppose the EU's plan to ban Russian energy deliveries by 2027, both legally and politically.
Michael Kretschmer, Minister-President of Saxony, proposed restarting dialogue with Russia on the Nord Stream 2 pipeline, despite clear opposition from the German government to any reactivation of the project.
Donald Trump is calling on the United Kingdom to abandon wind energy in favor of revitalizing offshore oil extraction, sparking debate over the economic and political implications of such an energy strategy after their recent trade agreement.
China and Egypt concluded over 30 energy-focused agreements, including electric vehicles, smart grids and storage technologies.