The U.S. liquefied natural gas (LNG) industry is expressing serious concerns over new rules introduced by the Trump administration that would impose fees on Chinese-built ships docking at American ports. The industry argues that these regulations are unmanageable and could harm the United States’ position in the global LNG market.
In recent letters to the administration, the American Petroleum Institute (API), the leading trade association for the U.S. oil and natural gas industry, warned that the policy could significantly increase shipping costs, disrupt exports, and jeopardize the country’s leadership in LNG exports. The Financial Times reported these concerns, citing sources familiar with the correspondence.
The rules, published on April 17 by U.S. Trade Representative Jamieson Greer, are part of a series of protectionist measures championed by President Donald Trump, aimed at boosting domestic manufacturing. However, the API argues that complying with the new regulations is impossible, even with a three-year delay and a 22-year phase-in period granted to the LNG sector.
Currently, there are no U.S.-built LNG carriers, and domestic shipyards lack the capacity to construct them by the 2029 deadline specified in the rules. The industry relies heavily on foreign-built ships, many of which are constructed in China, to transport LNG to global markets.
China has criticized the new regulations, describing them as counterproductive and harmful to all parties involved. The API’s stance highlights the potential negative impact on the U.S. economy and underscores the complexities of implementing protectionist policies in a globalized industry.
