Australia Strikes Back at Trump’s Trade War with Major LNG Deal to China

Australia strikes back with a big win in the middle of rising tensions between the US and China. Aussie energy company Woodside quietly signed a massive 15-year deal to sell liquefied natural gas (LNG) to China. Starting in 2027, Woodside will send about 0.6 million tonnes of LNG to China every year.

This is a big deal for a few reasons. It’s the first time Woodside has made a long-term deal like this directly with a Chinese customer. And it’s also the first time China Resources, one of China’s biggest gas companies, has agreed to buy gas from one company for such a long period.

But what’s bittersweet is the reason behind the deal. China has stopped importing gas from the US in a clear response to Trump’s tariffs. China hasn’t bought any LNG from America in over 60 days, the longest pause in five years.

Why? Because the US, under President Donald Trump, raised tariffs on Chinese goods. In retaliation, China hit back with a 34% tariff on US gas, making it far too expensive for Chinese buyers.

Head of China Gas Research at Rystad Energy, Wei Xiong said, “With the US-China energy corridor frozen, Chinese firms are looking elsewhere to secure long-term supply — and Australia is stepping in to fill the gap.”

Woodside’s Executive Vice President Mark Abbotsford was optimistic about the deal. “This agreement shows the long-term commitment in Asia to secure reliable energy,” he said. “We’re proud to begin our relationship with China Resources, the country’s leading gas utility.”

Because China doesn’t need gas from the US right now, they’ve been selling some of their existing US supply to Europe, which is great news for European countries still trying to replace the gas they used to get from Russia.

This latest LNG deal between Australia and China may be just the beginning of a global reshuffle in trade alliances. Reading headlines this morning, Trump has ramped up threats of even harsher tariffs, now floating a 50% tariff on Chinese goods if Beijing doesn't back down.

China is clearly looking for new, more stable partners, and Australia, with its reliable energy exports and less volatile political climate, is well positioned to step in and fill the gap. While the US and China continue their tit for tat standoff, this is a perfect opportunity for Australia to gain not just from trade deals, but also from growing our importance in a rapidly changing global order.

While this trade war has shaken the world to its core, Australia has stepped up and locked in the first big win.

Ishan Dan
CEO RegenX