Are Trump’s Tariffs a Tool to Boost U.S. Energy Exports?
U.S. President Donald Trump’s tariff threats have always made headlines—whether aimed at car imports, steel, or goods from America’s largest trading partners. But beyond the immediate trade battles, there’s a quieter question lingering in the background: Are these tariffs also a way to encourage more U.S. energy exports?
It’s a pattern that has emerged repeatedly. When Trump announces new tariffs, countries looking to ease tensions often respond by offering to buy more American products. Increasingly, those products include U.S. liquefied natural gas (LNG), crude oil, and other energy supplies.
Taiwan is the latest example. After Trump announced steep new tariffs on car imports, officials in Taipei suggested they may balance trade by cutting tariffs and increasing energy imports from the U.S. It's not the first time a country has floated this strategy. During Trump’s first term, similar trade negotiations led to increased LNG purchases by China, Japan, and South Korea—all framed as part of broader efforts to reduce trade deficits.
But the relationship between tariffs and energy deals isn’t always straightforward. In early 2025, China halted its imports of U.S. liquefied natural gas after Trump imposed an additional 10% tariff on all Chinese imports. Beijing retaliated with a 15% tariff specifically targeting U.S. LNG, alongside a smaller tariff on American crude oil. That move froze what had been $2.4 billion worth of LNG trade between the two countries in 2024, underlining how tariff battles can just as easily close doors as open them.
Meanwhile, U.S. LNG exports continue to surge elsewhere. The U.S. is now the world’s largest exporter of LNG, supplying key markets across Europe, Asia, and Latin America. Recent trade data shows that U.S. LNG exports to Latin America jumped over 100% in February compared to the previous month, while Europe has remained a top buyer amid ongoing energy security concerns.
For all the tough rhetoric surrounding tariffs and trade wars, the pattern in recent years has often ended the same way: initial threats and strong words from leaders in Canada, the European Union, and Asia, followed by negotiated settlements that include lower tariffs than first announced—and a quiet uptick in American energy exports.
The question now is whether that cycle will repeat. As tariff talks intensify, countries may once again look to ease tensions by turning to U.S. LNG, oil, and other energy imports. If so, energy could once again become a key bargaining chip in the broader game of trade diplomacy.
