President Donald Trump has announced that China may soon begin purchasing large amounts of oil and gas from Alaska. This could mark a major shift in U.S.-China trade relations and have lasting effects on America’s energy security and economy.
In a message on Truth Social, the President said a “very large scale transaction” may take place between China and Alaska. While the deal is not final yet, Trump confirmed that talks are underway. Energy Secretary Chris Wright and Interior Secretary Doug Burgum will soon meet to work out the details.
This development comes at a critical time. For much of 2024, China has avoided buying American crude oil and has been reselling U.S. liquefied natural gas (LNG) instead of using it for their own needs. According to Chinese customs data, only 5 percent of China’s LNG imports and 2 percent of its crude oil imports came from the United States last year. That’s a small share for the world’s largest energy importer. But this new deal signals that things might be changing.
The timing of this announcement is important. Earlier this year, trade tensions between the U.S. and China grew worse. Both nations imposed heavy tariffs on each other’s goods. China slapped a 44 percent tariff on U.S. soybean exports. That hit American farmers hard, since soybeans make up about 14 percent of all U.S. agricultural exports.
In response, Trump threatened a 100 percent tariff on Chinese goods, starting this November, and criticized China for limiting exports of rare earth minerals—materials used in high-tech products like smartphones and military equipment. These minerals are essential to both civilian life and national defense.
But now, Trump says progress is being made. In addition to energy purchases, China has agreed to buy large quantities of American soybeans, sorghum, and other farm products. “Farmers should immediately go out and buy more land and larger tractors,” Trump said, repeating a line from his first term in office. He also stated that China would continue supplying critical minerals and would work with the U.S. to stop the fentanyl crisis by cracking down on chemical shipments.
If this deal goes through, it could bring several benefits to the United States. First, it would help reduce America’s trade deficit with China, something President Trump has long aimed to fix. Second, it would boost energy production in Alaska—a state with vast untapped oil and gas reserves. Just last week, the administration finalized plans to open Alaska’s Arctic National Wildlife Refuge (ANWR) to drilling. That’s a controversial move, but one that fulfills a promise Trump made to expand U.S. energy independence.
From a national security standpoint, the deal could also reduce China’s energy dependence on hostile nations like Russia and Iran. Right now, China imports a large share of its oil from countries that do not share American values or interests. If China shifts those purchases to the U.S., it could give Washington more leverage in future negotiations.
There are still risks. China has a history of making promises it doesn’t fully keep. And while the deal might bring short-term gains, it’s important to watch whether China uses it to gain more control over U.S. energy markets. Strategic exports should never come at the cost of national security.
But for now, this move looks like a win for American energy producers, farmers, and workers. It also shows that strong leadership and tough trade policies can bring results. President Trump’s ability to bring China to the table—while defending American interests—stands in sharp contrast to the failures of past administrations.
In the days ahead, all eyes will be on Energy Secretary Wright and Interior Secretary Burgum as they work to finalize the deal. If successful, it could mark a turning point in U.S.-China trade and energy policy, with long-term benefits for America’s economy and security.