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US and China discuss cutting China’s 15% LNG tariff ahead of 24 Sep Xi visit

Reuters (18 Sep 2026) reports Washington and Beijing are discussing a plan to reduce or eliminate China’s 15% tariff on US LNG as part of a broader energy and agriculture package that could be announced when Xi Jinping visits Washington on 24 Sep. The LNG relief is being talked about alongside the previously reported reciprocal framework under which each side would cut tariffs on about USD 30 billion of goods. Talks are not final; White House and Chinese embassy did not comment.

Reuters (18 Sep 2026, Jarrett Renshaw) reports that the United States and China are discussing a plan to reduce or eliminate China’s tariffs on American liquefied natural gas as part of a broader package of energy and agriculture agreements that could be announced when Chinese President Xi Jinping visits Washington next week, according to two people briefed on the discussions.

The potential LNG relief is being discussed alongside a broader framework under which the US and China would each cut tariffs on about USD 30 billion of goods. China imposed a 15% tariff on US LNG in February 2025 in retaliation for US duties on Chinese goods; that effectively halted US–China LNG trade, with the last significant cargoes arriving early that year. US LNG exports to China fell from 64 vessels in 2024 to effectively zero in 2025, after a 2021 peak of 131 vessels, Reuters cites US government data.

The discussions are part of efforts to stabilize trade ties ahead of the 24 Sep Trump–Xi meeting and are not final, the people said. Neither the White House nor the Chinese embassy in Washington responded to comment requests. Reuters also notes that in recent months several US Gulf Coast cargoes have arrived in China or were headed there (LSEG shipping data), suggesting some Chinese buyers had already returned even while the tariff remained in place. For importers of Chinese goods, the actionable watch is still whether any reciprocal manufacturing-input cuts are published — not the LNG line itself.

Source: Reuters

Topics

  • tariffs
  • us-china
  • lng
  • energy
  • trade-policy

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