Donald Trump announces Alaska gas deal with China

President Donald Trump has suggested a possible oil and gas deal for Alaska with China following his meeting with the Chinese leader Xi Jinping.

Trump wrote on Truth Social on Thursday: “A very large scale transaction may take place concerning the purchase of oil and gas from the great state of Alaska.”

Why It Matters

China has previously avoided purchasing U.S. crude oil, and has been reselling U.S. liquefied natural gas (LNG) since early this year. America only accounted for around five percent of China’s LNG imports and two percent of its crude oil imports in 2024, according to Chinese customs data. Trump’s announcement indicates a change in China’s trade policy. 

It comes after trade tensions escalated rapidly between the U.S. and China this year, with tariffs being imposed by both nations. 

This has included China’s 44 percent tariff on U.S. soybean exports, which was a huge blow to American farmers. Soybeans make up about 14 percent of total U.S. agricultural exports, making them America’s most valuable foodstuff sold abroad. 

Trump also threatened earlier this month to impose an additional 100 percent tariff on Chinese goods starting in November following China’s tightening restrictions on rare earths exports.

What To Know

Trump said on Truth Social that China had agreed to “begin the process of purchasing” American energy, and added that Energy Secretary Chris Wright and Secretary of the Interior Doug Burgum would be meeting to see if a deal “can be worked out.”

The president also said that President Xi had authorized China to begin purchasing “massive amounts” of soybeans and other farm products. “Farmers should immediately go out and buy more land and larger tractors,” he said. 

Trump added that China had agreed to “openly and freely” continue the flow of rare earths and critical minerals, and that Beijing would “work diligently” with the U.S. to stop the flow of fentanyl.

Trump has previously said that China had not done enough to prevent the flow of precursor chemicals – which are used to make fentanyl – into the U.S.

It comes after the Trump administration announced last week that it had finalized plans to open Alaska’s Arctic National Wildlife Refuge to potential oil and gas drilling, reviving a decades-long political and environmental battle over one of America’s most pristine and contested landscapes.

The move fulfilled a campaign promise by President Donald Trump and congressional Republicans to restore energy exploration in the Arctic region.

What People Are Saying

Trump wrote on Truth Social: “I had a truly great meeting with President Xi of China. There is enormous respect between our two countries, and that will only be enhanced with what just took place. We agreed on many things, with others, even of high importance, being very close to resolved.

“I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of soybeans, sorghum, and other farm products. Our farmers will be very happy! In fact, as I said once before during my first Administration, farmers should immediately go out and buy more land and larger tractors. I would like to thank President Xi for this!”

What Happens Next

Trump said that Wright and Burgum will be meeting to work on the details of the deal, but it is not yet clear when the discussions will take place.