
Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals
HANOI--Asian countries are offering to buy more U.S. liquefied natural gas in negotiations with the Trump administration as a way to alleviate tensions over U.S. trade deficits and forestall higher tariffs. Analysts warn that strategy could undermine those countries' long-term climate ambitions and energy security.
Buying more U.S. LNG has topped the list of concessions Asian countries have offered in talks with Washington over President Donald Trump's sweeping tariffs on foreign goods. Vietnam's Prime Minister underlined the need to buy more of the super-chilled fuel in a government meeting, and the government signed a deal in May with an American company to develop a gas import hub. JERA, Japan's largest power generator, signed new 20-year contracts last month to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030.
U.S. efforts to sell more LNG to Asia predate the Trump administration, but they've gained momentum with his intense push to win trade deals.
Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transport that is used as a fuel for transport, residential cooking and heating and industrial processes.
Trump discussed cooperation on a $44 billion Alaska LNG project with South Korea, prompting a visit by officials to the site in June. The U.S. president has promoted the project as a way to supply gas from Alaska's vast North Slope to a liquefication plant at Nikiski in south-central Alaska, with an eye largely on exports to Asian countries while bypassing the Panama Canal Thailand has offered to commit to a long-term deal for American fuel and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from
The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on U.S. energy shipments to help narrow its trade surplus with Washington.
'Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG,' said Tim Daiss, at the APAC Energy Consultancy, pointing out that Japan had agreed to buy more despite being so 'awash in the fuel' that it was being forced to cancel projects and contracts to offload the excess to Asia's growing economies.
'Not good for Southeast Asia's sustainability goals,' he said.
Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia.
Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner energy sources like solar or wind that offer faster, more affordable ways to meet growing power demand, said Indra Overland, head of the Center for Energy Research at the Norwegian Institute of International Affairs.
Building pipelines, terminals, and even household gas stoves creates systems that are expensive and difficult to replace—making it harder to switch to renewables later. 'And you're more likely then to get stuck for longer,' he said.
Energy companies that profit from gas or coal are powerful vested interests, swaying policy to favor their business models, he said.
LNG burns cleaner than coal, but it's still a fossil fuel that emits greenhouse gases and contributes to climate change.
Many LNG contracts include 'take-or-pay' clauses, obliging governments to pay even if they don't use the fuel. Christopher Doleman of the Institute for Energy Economics and Financial Analysis warns that if renewable energy grows fast, reducing the need for LNG, countries may still have to pay for gas they no longer need.
Pakistan is an example. Soaring LNG costs drove up electricity prices, pushing consumers to install rooftop solar panels. As demand for power drops and gas supply surges, the country is deferring LNG shipments and trying to resell excess fuel.
Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on U.S. trade deficits.
South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year.
Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices.
Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said.
A core concern is over the long-term stability of the U.S. as a trading partner, said Overland. 'The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition,' he said.
LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics.
'That's the bit that they leave out ... But it's pretty important,' he said.
This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz and earlier during the war in Ukraine, when LNG cargoes originally destined for Asia were rerouted to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers.
'Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia,' Kenner said.
Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used.
'There are genuine choices to meet rising electricity demand. It is not just having to build LNG,' he said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Yomiuri Shimbun
a few seconds ago
- Yomiuri Shimbun
US-Philippines Trade Talks Yield Modest Tariff Shift after Trump-Marcos Meeting
WASHINGTON, July 22 (Reuters) – U.S. President Donald Trump announced on Tuesday a new 19% tariff rate for goods from the Philippines after what he called a 'beautiful visit' by Philippine President Ferdinand Marcos Jr. to the White House, and said U.S. goods would pay zero tariffs. The new tariff rate is just below the 20% threatened by Trump earlier this month, but still above the 17% rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19% rate announced for Indonesia and bests Vietnam's slightly higher rate of 20%. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had earlier signaled a deal could be reached during the visit. 'It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff,' Trump said, calling Marcos a 'very good and tough negotiator.' Trump said the two Pacific allies, who will celebrate 80 years of diplomatic relations next year, would also work together militarily but gave no details. Marcos, the first Southeast Asian leader to meet Trump in his second term, told reporters at the start of the meeting that the United States was his country's 'strongest, closest, most reliable ally.' He had no comment after Trump's post on the new tariff rate. Philippine Ambassador to the United States Jose Manuel Romualdez said it represents 'an evolving good deal for both countries that could be further improved over time.' Trump said the 'very big numbers' in the trade agreement would only grow larger. The U.S. had a deficit of nearly $5 billion with the Philippines last year on bilateral goods trade of $23.5 billion. Trump has upended global trade flows with tariffs on nearly every trading partner, with almost all countries facing a 10% tariff that took effect in April and many facing steep additional tariffs from August 1. Gregory Poling, a Southeast Asia expert at Washington's Center for Strategic and International Studies, said it was too early to say much about the Philippines trade deal since no details had been released, as was the case with similar pacts with Indonesia and Vietnam. 'At the end of the day, I don't think the Philippine government is sweating the final number so long as it keeps Philippine-made goods competitive with those of its neighbors, which this does,' Poling said. The White House announced further details of a framework for a U.S.-Indonesia trade agreementon Tuesday, saying negotiators were due to finalize the terms in coming weeks. During the Oval Office event, Trump said he may visit China for a landmark trip 'in the not-too-distant future' and noted the Philippines had distanced itself from Beijing after his election last November. 'The country was maybe tilting toward China, but we un-tilted it very, very quickly,' Trump said. Philippine officials had said Marcos planned to stress that Manila must become economically stronger if it is to serve as a truly robust U.S. partner in the Indo-Pacific. Protesters gathered near the White House as Marcos arrived, demanding the Philippine leader address pleas of Filipino Americans and migrant workers who have made multiple requests for support amid federal immigration raids.


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Trump Administration Withdraws from UNESCO Again, Only 2 Years after US Rejoined
UNITED NATIONS (AP) — The Trump administration announced Tuesday that it will once again withdraw from the U.N. cultural agency UNESCO, an expected move that has the U.S. further retreating from international organizations. The decision to pull U.S. funding and participation from UNESCO comes two years after the Biden administration rejoined following a controversial, five-year absence that began during President Donald Trump's first term. The White House cited similar concerns as it did in 2018, saying it believes U.S. involvement is not in its national interest and accusing the agency of promoting anti-Israel speech. The decision, which won't go into effect until December 2026, will deal a blow to an agency known for preserving cultural heritage through its UNESCO World Heritage Sites program — which recognizes significant landmarks for protection, ranging from the Taj Mahal to Egypt's pyramids of Giza and the Grand Canyon National Park. The agency also empowers education and science across the globe. It is the Trump administration's latest move to pull support for U.N. agencies under a larger campaign to reshape U.S. diplomacy. Under the 'America First' approach, the administration has pulled out of the U.N. World Health Organization and the top U.N. human rights body, while reassessing its funding for others. This has left the U.N., which is in the process of its own massive overhaul, reevaluating core programs and initiatives and what the international body would look like without support from the U.S. — its largest donor. State Department spokesperson Tammy Bruce said in a statement that the withdrawal was linked to UNESCO's perceived agenda to 'advance divisive social and cultural causes.' She added that UNESCO's decision in 2011 'to admit the 'State of Palestine' as a Member State is highly problematic, contrary to U.S. policy, and contributed to the proliferation of anti-Israel rhetoric within the organization.' UNESCO director general Audrey Azoulay said she 'deeply' regrets the U.S. decision but said it was expected and that the agency 'has prepared for it.' She also denied accusations of anti-Israel bias, saying it contradicts 'the reality of UNESCO's efforts, particularly in the field of Holocaust education and the fight against antisemitism.' Azoulay added that 'the reasons put forward by the United States of America are the same as seven years ago, even though the situation has changed profoundly, political tensions have receded, and UNESCO today constitutes a rare forum for consensus on concrete and action-oriented multilateralism.' Danny Danon, Israel's ambassador to the U.N., celebrated the announcement, saying in a statement that it is a 'fitting response to the consistent misguided anti-Israel bias of UNESCO, an organization that has lost its way.' The Biden administration had rejoined UNESCO in 2023 after citing concerns that China was filling the gap left by the U.S. in UNESCO policymaking, notably in setting standards for artificial intelligence and technology education. 'Unilaterally withdrawing the United States from UNESCO is another assault by the Trump administration on international cooperation and U.S. global leadership,' Rep. Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, said. 'This decision cedes more ground to U.S. competitors, especially China, who will take advantage of America's absence to further shape the international system in their favor.' The withdrawal, which was first reported by the New York Post, came after a review ordered by the Trump administration earlier this year. While the U.S. had previously provided a notable share of the agency's budget, UNESCO has diversified its funding sources in recent years as the U.S. contribution has decreased. Today, American assistance represents only 8% of the agency's total budget. Bruce hinted later Tuesday that further U.S. withdrawal from international organizations could be coming as a result of the ongoing review to ensure 'continued U.S. participation in international organizations will focus on advancing American interests with clarity and conviction.' Azoulay pledged that UNESCO will carry out its missions despite 'inevitably reduced resources.' The agency said that it is not considering any staff layoffs at this stage. 'UNESCO's purpose is to welcome all the nations of the world, and the United States of America is and always will be welcome,' she said. 'We will continue to work hand in hand with all our American partners in the private sector, academia and non-profit organizations, and will pursue our political dialogue with the U.S. administration and Congress.' The U.S. previously pulled out of UNESCO under the Reagan administration in 1984 because it viewed the agency as mismanaged, corrupt and used to advance the interests of the Soviet Union. It rejoined in 2003 during George W. Bush's presidency. France, where UNESCO is based, stated in a press release that it regrets the U.S.'s decision to withdraw from the agency, which was founded in 1946 'to prevent conflicts through education, culture and tolerance.' 'France supports UNESCO, which backs several of its priorities at international level, particularly access to education for all, the protection of endangered heritage, the protection of our oceans, the responsible development of artificial intelligence and the fight against anti-Semitism and hate speech,' the French foreign ministry said.

2 hours ago
Trump Announces Trade Deal with Japan Involving 15 Pct Levy
News from Japan Economy Jul 23, 2025 10:00 (JST) Washington, July 22 (Jiji Press)--U.S. President Donald Trump said Tuesday that his country and Japan have concluded a trade agreement setting the reciprocal tariff rate at 15 pct. According to Japanese government officials, the U.S. administration agreed to a 15 pct tariff on automobiles imported from Japan. "We just completed a massive deal with Japan, perhaps the largest deal ever made," Trump posted on his social media platform Truth Social. The president said that Japan will open up its markets to U.S. automobiles and agricultural products including rice. He also said that Japan will invest 550 billion dollars into the United States. Washington was set to impose a 25 pct levy on Japan on Aug. 1 if it could not reach a deal with Tokyo. The two sides reached an agreement some three months after the start of negotiations, partly thanks to Tokyo's decision to allow larger imports of rice, which had previously been considered off-limits. [Copyright The Jiji Press, Ltd.] Jiji Press