There’s a new wrinkle that could dramatically improve the likelihood Alaska could see a multi-billion dollar liquefied natural gas pipeline built from the North Slope to tidewater in Nikiski.
State leaders have for decades attempted to kickstart the mega project that could bring an economic boom to Alaska.
Republican President Donald Trump’s tariff wars could be the catalyst to developing the $44 billion mega project.
Trump is prioritizing leveling trade deficits with other countries and his weapon of choice is raising tariffs — tariffs that could cripple the economies of other nations that depend on heavy exports to the U.S.
This week, the president announced both Japan and South Korea have renewed interest in importing natural gas from Alaska.
“Japan, South Korea and other nations want to be our partner, with investments of trillions of dollars each,” said Trump, during his address to a joint session of Congress.
Currently, the United States has a $68 billion trade deficit with Japan. America has a $70 billion trade deficit with South Korea. Our trade deficit with South Korea grew by a third in 2024. With Japan, it grew by 13% since 2021.
This does not sit well with the president.
And since Japan’s tariffs on goods imported from the U.S. are typically double of what our country charges, Trump wants to level the playing field.
Trump says South Korea’s tariffs on U.S. imports are on average four times of what we charge.
“Countless other nations charge us tremendously higher tariffs than we charge them. It’s very unfair,” said Trump.
Analysts say Trump’s laser focus on leveling tariffs has motivated countries like Japan and South Korea to find new ways to lower their trade deficit with the US in hopes the president will reconsider making them a victim of his tariff war.
This is where the Alaska gas pipeline comes in.
If South Korea and Japan agree to import natural gas from the Alaska pipeline mega project, it would help lower the two nation’s trade deficits with the US.
Reuters reports Japanese Prime Minister Shigeru Ishiba said on Wednesday expanding American gas imports would meet the national interests of both Japan and the US as it would stabilize Japan’s energy supply while reducing the U.S. trade deficit.
Japan’s trade minister will visit Washington this month seeking exemptions from Trump’s tariffs using the prospect of importing more natural gas from the US as a bargaining tool.
Trump on Tuesday during his address to the nation made it clear he’s bullish on the prospect of the building of Alaska’s gas pipeline.
“My administration is working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner with investments of trillions of dollars each,” said Trump. “There’s never been anything like that one. It will be truly spectacular. It’s all set to go. The permitting is gotten.”
Alaska legacy media outlets like the Anchorage Daily News, Alaska’s News Source, and Alaska Public Media have all downplayed the possibility of Trump kickstarting the state’s gas pipeline.
But Trump has built a consistent record of accomplishing the things he promises, especially during his second term. It’s no secret the default position of Alaska’s legacy media, especially the Anchorage Daily News, is to doubt, demonize, and attack Trump.
But US Sen. Dan Sullivan and Gov. Mike Dunleavy, both Republicans, hold a different view. Sullivan says it was a big deal the president mentioned the Alaska pipeline during his national address on Tuesday.
“People have always been naysayers,” said Sullivan. “Gov. Dunleavy and I worked this really hard to encourage the president and his team to put it in the State of the Union. They did. That was a huge win for us.”
If there’s one thing Trump has a talent for it’s making the most of leverage. And the leverage generated from his threat of the use of tariffs could very well be the final piece of the puzzle that brings about the long dreamed of Alaska natural gas pipeline.
Dan Fagan reports for Must Read Alaska. He’s covered Alaska politics for close to 30 years. He currently hosts a morning drive radio talk show on 1020 am 92.5 and 104.5 fm on KVNT. For news tips, email Dan at [email protected]
