The United States and China are discussing potential tariff relief on American liquefied natural gas as part of broader negotiations covering energy and agriculture. The discussions could produce agreements when Xi visits Washington next week, according to people familiar with the talks.

China imposed the 15% tariff on U.S. liquefied natural gas (LNG) in February 2025 in response to tariffs imposed by the Trump administration on Chinese goods. The move effectively halted most U.S. LNG shipments to China, with significant cargoes largely stopping early last year.

The potential LNG tariff reduction is being considered alongside a broader framework in which the United States and China could each reduce tariffs on roughly $30 billion worth of goods. Energy and agricultural products are expected to be among the areas addressed in the negotiations.

The discussions come as American LNG producers prepare for a major expansion in export capacity. U.S. export capacity is expected to increase by roughly 10 billion cubic feet per day through 2027 as new and expanded Gulf Coast facilities come online, creating additional demand for international buyers.

China has already signaled renewed interest in American natural gas despite the existing tariff. China Gas Holdings recently signed a 20-year agreement to purchase 500,000 metric tons of U.S. LNG annually from Venture Global beginning in 2030.

The tariff discussions remain preliminary and are not yet a finalized agreement. Any reduction could reopen a major market for American LNG producers as Trump and Xi prepare for their September 24 summit in Washington.