TradeWinds: Tariffs threat making LNG buyers hesitant on cementing long-term US deals

March 26, 2025 Actions by the new US administration are creating market uncertainties that are making some buyers reluctant to sign long-term LNG deals. Speaking on a webinar, Poten global head of business intelligence Jason Feer highlighted the retaliatory 15% tariff on LNG imports by China which has seen the country cease taking in shipments. Feer also flagged the US Trade Representative proposals to impose fees on Chinese ships, and the ruling that 15% of exports should be carried on US-flagged ships and 5% on US-built vessels within seven years. He said this could have significant impact on shipping economics. “Our view is that 15% and 5% is impossible,” he said, explaining that the US does not have the yard capacity or labour to build LNG carriers at a competitive price within that time frame.

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