Asia and Europe Move to Purchase US LNG Ahead of Trump Inauguration

Bloomberg reported on the 19th (local time) that some Asian countries including Korea and several European countries are trying to purchase U.S.-produced liquefied natural gas (LNG) to avoid the tariff bomb threatened by U.S. President-elect Donald Trump.

Reuters Yonhap News

President-elect Trump, who will be inaugurated on the 20th, has threatened to impose tariffs on countries with a trade surplus with the U.S. It is explained that Asian countries such as Korea and Taiwan, as well as European Union (EU) countries, are considering increasing imports of U.S.-produced LNG as a way to reduce their trade surpluses.

Saul Carbonic, senior energy analyst at research firm MST Marquis, said, "Countries trading with the U.S. see purchasing U.S.-produced LNG as helpful in tariff negotiations with the Trump administration," adding, "There has been a significant increase in efforts to secure U.S. energy since Trump's election victory."

President-elect Trump pledged to achieve more than double the existing LNG export plan volume by 2030 and advocated for the revival of fossil fuels to voters. Therefore, it is expected that after his inauguration on the 20th, policies to encourage U.S. oil and gas development will be announced.

The industry expects that this may include lifting new licensing regulations on LNG exports established by President Joe Biden. Due to these regulations, new U.S. LNG export licenses decreased from 38 in 2022 to 7 last year.

In fact, in recent months, buyers from several countries including Japan and Thailand have reportedly negotiated to import U.S.-produced LNG. They have expressed willingness to sign contracts if the price is appropriate.

Furthermore, European countries are also trying to purchase U.S.-produced LNG after Russian gas supplies were cut off. It is also calculated that this could be a way to avoid U.S. tariffs on EU goods.

Bloomberg reported that An Deok-geun, Minister of Trade, Industry and Energy, said on the 16th, "Other countries are all discussing how to reduce the increasing trade deficits under the Trump administration," and "Everyone is saying they want American energy."

This content was produced with the assistance of AI translation services.