Aerial view of two oil tankers at a dock.

Countries boost U.S. gas purchases amid tariff threats

As President Trump pushes fossil fuel expansion, foreign governments and companies are increasing investments in American liquefied natural gas to maintain trade ties and avoid tariffs.

Max Bearak, Rebecca F. Elliott, and Brad Plumer report for The New York Times.


In short:

  • Countries with trade imbalances, including Japan, Ukraine, and South Africa, are pursuing long-term deals to buy American liquefied natural gas, hoping to avoid U.S. tariffs or secure political goodwill.
  • U.S. gas investments are surging, with major companies considering projects such as a $44 billion Alaska pipeline and an Abu Dhabi-backed expansion in production.
  • The deals could lock in decades of fossil fuel use, complicating global climate commitments, while methane emissions from U.S. gas production continue to rise.

Key quote:

“Fundamentally, our forecasts haven’t changed in terms of long-term L.N.G. demand. What’s changed is that the forecast for renewable energy demand is lower.”

— Xi Nan, head of Rystad Energy’s L.N.G. research team

Why this matters:

The surge in American gas exports reflects a clash between economic strategy and climate goals. Liquefied natural gas is promoted as a “transitional fuel,” but it remains a major contributor to greenhouse gas emissions, particularly methane, which traps heat far more effectively than carbon dioxide. As countries secure long-term contracts, they risk delaying the shift to renewable energy. The Biden administration had sought to slow approvals for new LNG projects, citing climate concerns. But with Trump back in the White House, policies are shifting in favor of fossil fuel expansion, making it easier for companies to invest in long-term gas infrastructure.

Supporters argue that America’s booming LNG exports strengthen geopolitical alliances, particularly in Europe, which has sought alternatives to Russian gas since the invasion of Ukraine. Critics, however, warn that this economic strategy comes at a cost. With scientists sounding alarms about record-breaking global temperatures and extreme weather events, the world faces a widening gap between climate goals and energy investments.

Related: Trump officials push for expanded natural gas exports in Louisiana

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