According to traders and analysts, Chinese purchasers of liquefied natural gas (LNG) are reselling cargoes from the U.S. due to increasing import costs from tariffs. This trend is expected to grow as new long-term supply agreements take effect and domestic demand weakens. China, the largest buyer of LNG globally, did not import any U.S. LNG in March following the imposition of tariffs by both China and the U.S. Chinese LNG importers are likely to increase resales of U.S. LNG, diverting them mainly to Europe, where the tariff difference is more favorable. Chinese state-owned companies like Sinopec and CNOOC have begun reselling U.S. LNG contracts to other markets rather than China. Traders confirm the majority of U.S. LNG supplies have been redirected to Europe due to the more favorable pricing in that market.