Asian countries are planning to use "oil and gas offsetting tariffs" to purchase US energy to resolve trade imbalances.

Many Asian countries have a huge trade surplus with the United States while also being major energy importers. Therefore, they are seeking to purchase more American oil and natural gas in order to reduce their trade surplus with the US and alleviate the tariff burden under President Trump's comprehensive imposition of new import tariffs. Asian countries planning to strengthen their purchases of American oil and natural gas include Indonesia, Pakistan, India, and Thailand. Indonesia Indonesian Energy Minister Bahlil Lahadalia stated to local media last Tuesday that as part of tariff negotiations, Indonesia will propose to increase imports of crude oil and liquefied petroleum gas (LPG) from the US by around $10 billion. Bahlil mentioned that the Indonesian Ministry of Energy suggests increasing the quota for US LPG imports and importing more American crude oil to help achieve their goals. Pakistan According to a government source involved in the proposal and a refinery executive, Pakistan is considering importing crude oil from the US for the first time to offset the trade imbalance causing the US to raise tariffs. The refinery executive stated that their idea is to purchase US crude oil equivalent to Pakistan's current imports of crude oil and petroleum products, totaling around $1 billion. India Four government and industry sources stated that India is considering the proposal to remove import taxes on US liquefied natural gas (LNG) to promote purchases and help reduce the trade surplus with the US, which is a key factor in Trump's evaluation of trade negotiations. India also plans to remove import tariffs on US ethane and LPG. Furthermore, India's largest LNG importer, GAIL India Ltd, issued a tender to purchase up to a 26% stake in a US LNG project and signed a 15-year natural gas import agreement. Thailand The Thai government announced last Wednesday that they plan to import more US LNG and ethane over the next five years. In addition to the existing plan to annually import 1 million tons of LNG (valued at $500 million) starting in 2026, totaling 15 million tons over 15 years, Thailand also plans to sign another contract to purchase over 1 million tons of US LNG in the next five years. The Finance Minister of Thailand also stated that Thailand plans to import 400,000 tons of US ethane over the next four years, valued at $100 million. Alaska LNG Project Trump hopes for Japan, South Korea, and Taiwan to join the $44 billion Alaska LNG export project, which is part of a broader effort by the US government to promote trade and tariffs. The project aims to transport natural gas from remote northern Alaska to the south through a $44 billion, 800-mile pipeline, then ship it in liquefied form to Japan, South Korea, and Taiwan via a route around Panama Canal. At the end of March, an Alaska delegation visited Japan to present the project to policymakers and meet potential supporters. Mitsubishi Corporation's CEO Katsuya Nakanishi stated that Mitsubishi might consider investing in the Alaska LNG project, but any decision would require careful review. Korean Ministry of Industry officials are also considering visiting Alaska soon as part of negotiations between the US and South Korea on the project.