Liquefied natural gas buyers in China are seeking to swap their U.S. shipments for cargoes from other nations after Beijing pledged to raise tariffs amid a deepening trade dispute, according to traders with knowledge of the situation.
Some Chinese LNG buyers have approached suppliers about trading the U.S. cargoes, which they’ve already committed to buy, for shipments from non-tariff nations, said the people, who asked not to be identified as the information isn’t public. While China’s imports of American gas have dropped since it slapped a 10% duty on the fuel in September, pressure is mounting to completely avoid the cargoes after Beijing said Monday it would boost the tariff to 25% starting June 1.
