Trump’s Trade Deals Supercharge U.S. LNG Exports and Energy Diplomacy
July 31, 2025
President Trump, during a high-profile trade push, has struck major agreements positioning liquefied natural gas (LNG) as a centerpiece of U.S. energy diplomacy. Notably, he finalized a landmark deal with the European Union, securing commitments for roughly $750 billion in U.S. energy imports—including LNG, oil, and possibly nuclear fuel—over three years. The pact also saw the U.S. agreeing to impose 15% tariffs on incoming European goods, while EU imports to the U.S. remained free of duties. Markets responded positively, with energy firms like Cheniere Energy experiencing notable stock gains in anticipation of greater LNG demand.
Simultaneously, South Korea agreed to invest $350 billion in American projects—spanning industries such as shipping, semiconductors, biotech, batteries, and energy—and to purchase $100 billion worth of U.S. energy products, including LNG. In exchange, South Korean imports to the U.S. will face a 15% tariff, down from a previously threatened 25%.
Trump’s strategy reflects broader economic and geopolitical aims: using the Laffer curve concept to set tariffs at levels that maximize revenue while encouraging large-scale energy exports. Lawmakers and analysts have praised this shift for strengthening U.S. energy dominance and reducing dependence on adversarial suppliers. However, some experts caution that over-reliance on LNG export deals may lock trading partners—and U.S. producers—into fossil fuel dependence, which could hamper future clean energy transitions and climate goals.
