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Trade battle with China spreads to U.S. gas exports

A facility at sunset.
The LNG storage facility for China Resource Gas in Xiangyang. Photo: Wang Hu/VCG

Liquified natural gas (LNG) is on the list of products targeted by planned retaliatory tariffs on $60 billion worth of U.S. goods announced by China on Friday morning, Reuters reports.

Why it matters: Hitting U.S. LNG exports is one of China's "last major weapons from its energy and commodities arsenal" in the escalating trade war with President Donald Trump, they report.

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The big picture: China is an important destination for the expanding U.S. LNG industry. Last year it was the third-largest buyer of U.S. cargoes, according to the federal Energy Information Administration.

  • Companies like Cheniere Energy have been exploring opening additional terminals in China for shipment, Bloomberg reports; this development leaves "[b]illions of U.S. dollars" in question.
  • Other products included in China's planned tariffs are beef, coffee, some aircraft, and more.

Go deeper: China will soon be the world's largest natural gas importer.

Liquified natural gas (LNG)
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