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Trump’s tariffs are pushing Asia to import LNG from the US

Asian nations are moving to purchase more liquefied natural gas from the US as they seek to ease trade frictions with Washington, but analysts warn this push could slow their shift toward cleaner energy.

Since talks with the current administration began over steep US tariffs, offering to import more LNG from the US has become a key bargaining chip for Asia. Vietnam’s prime minister stressed the importance of boosting purchases of fuel at a meeting earlier this year. In May, Vietnam signed an agreement with a firm in America to build a gas imports hub.

In Japan, JERA, the country’s biggest power generator, formed 20‑year deals in June to purchase over 5 million metric tons of LNG from the US each year, with deliveries due to start around 2030. Though the push to sell American gas to Asia predates the current WHITE House, it has picked up speed under President Trump’s drive for more favorable trade arrangements.

LNG is simply natural gas chilled into a liquid, so it’s easier to store and ship. It is used for power generation, cooking, heating and in factories.

In recent discussions, President TRUMP explored forming a deal with South Korea over the $44 billion Alaska LNG project, leading South Korean officials to visit the gas site last month. The Philippines, at the same time, is weighing gas imports from Alaska, and India has talked about removing taxes for imports of US energy to reduce the trade gap with the United States.

LNG import agreements can hurt renewable energy adoption

Observers worry that long‑term gas deals could lock Asian countries into fossil‑fuel infrastructure just as solar and wind power become cheaper and more widespread. Indra Overland, from the Norwegian Institute of International Affairs, said that building terminals, pipelines, and home gas stoves results in a costly and hard-to-replace system. “And you’re more likely then to get stuck for longer,” he said.

Energy companies with a stake in coal and gas can pressure governments to FORM policies that favor their own priorities and financial objectives. LNG contracts often include clauses for “take‑or‑pay,” forcing buyers to pay for it despite using less than they agreed. 

Christopher Doleman from the Institute said that if renewables grow faster than expected, nations may still be on the hook for LNG that they do not need.

Pakistan is one example. As LNG costs soared, electricity bills rose, spurring homeowners to install solar panels on their rooftops. With power demand dipping and gas supplies piling up, Islamabad has delayed some LNG shipments and tried to sell excess cargo to other buyers.

Still, analysts say the extra LNG Asia plans to buy is unlikely to make a big dent in US trade deficits. Nations may sign on to show goodwill in talks, but the volumes involved fall short of what’s needed to reshape the overall trade picture.

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