The trade war between the United States and China could impact the LNG market

Tariffs on US products imported into China currently stand at 125%. They apply in particular to LNG imports. China was only buying small volumes of LNG from the United States, around 6 billion cubic meters on the spot market. With the increase in customs duties, these volumes have been reduced to zero. However, China, wanting to reduce its purchases on the spot market, had signed long-term contracts with US companies for the purchase of much larger volumes of LNG, with deliveries starting in 2026. These contracts could be called into question if high tariffs remain in place. China could invoke force majeure and terminate these contracts or, as a simpler legal solution, resell the cargoes on the spot market.