Asian Nations Rush to Buy US LNG in Bid to Ease Tariff Pressures

In a bid to mitigate the impact of President Donald Trump’s sweeping reciprocal tariffs, several Asian governments are accelerating efforts to secure liquefied natural gas (LNG) purchase agreements with the United States, according to Bloomberg.

From South Korea to Indonesia, nations are hoping these deals will help reduce trade surpluses with the US and potentially alleviate tariff pressures.

Indonesian President Prabowo Subianto pledged to “buy more” goods from America on Tuesday, specifically including LNG. Thailand has also expressed interest in increasing its LNG imports from the US. President Trump himself recently stated that he had discussed “large scale” purchases of US LNG with South Korea’s interim leader, Han Duck-soo.

Japan, South Korea, and Taiwan are reportedly considering investments in the long-delayed $44 billion LNG export project in Alaska, a project that has received backing from the Trump administration.

Last week’s cascade of global tariffs has left Asian economies particularly vulnerable, prompting governments to seek ways to alleviate the economic strain. LNG emerges as a practical option, representing one of the few US exports that Asian nations can realistically commit to increasing substantially. The US is currently the world’s largest supplier of LNG, with exports projected to double by the end of the decade.

Asia represents a significant market for LNG, with many of the top global buyers located in the region. Demand from emerging nations is expected to rise as their economies grow, domestic gas production stagnates, and many shift away from coal-fired power generation. LNG is often purchased through long-term contracts spanning decades and worth billions of dollars – figures large enough to capture the attention of the White House.

In India, LNG importers are reportedly lobbying the government to eliminate a 2.5% customs duty on US gas shipments. Price remains a key consideration, as Gail India Ltd, which has a long-term contract to lift 5.8 million tons of US LNG annually, currently resells most of these volumes overseas due to the high cost of importing them to India.

The notable exception to this buying trend is China, the world’s largest importer of LNG. Beijing has imposed retaliatory tariffs on US LNG, leading Chinese importers to resell their contracted US LNG shipments to markets in Europe and other parts of Asia.