Escalating trade tensions prompt China to halt US LNG imports

China hasn’t imported liquefied natural gas (LNG) from the United States for 60 days, the longest gap in five years. The disruption is attributed to escalating trade tensions between Beijing and Washington, prompting Chinese companies to divert supplies to alternative markets.

According to analytics firm Kpler, no vessels carrying US LNG are currently en route to China. A similar scenario played out during the trade conflict under the first Trump administration, when shipments were completely halted for about 400 days through April 2020.

The current situation underscores the growing geopolitical friction that is creating a rift between the world's largest LNG seller and buyer. In response to the US restrictions enacted on February 10, Beijing imposed a 15% tariff on American gas. Last Friday, China escalated its retaliation by extending these new duties to all US imports.

China's retreat from American energy markets has inadvertently benefited Europe, which is working to compensate for the loss of Russian pipeline gas and focusing on building reserves ahead of the upcoming heating season, Bloomberg noted.