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]
“Trace” imbalance…
Bloomberg has an unbiased article that explains South Korea’s effective rate via a carveout for the USA is close to zero. When reporting on what Trump says one has to remember Trump is a serial liar
Bloomberg, unbiased, OK Frank
Yeah Frank, don’t you know that if you want 100% unbiased reporting on Trump you need to only rely on MRAK. I mean, if Trump took a dump, Suzanne would write about it in glowing prose about how great it was for America.
“But Trump has built a consistent record of accomplishing the things he promises, especially during his second term.” Dan – if I’m not mistaken he promised to end the Ukraine war on day 1 with a phone call. He promised to lower grocery prices immediately. He promised no taxes on overtime. A 50% decrease in car insurance. What he didn’t promise was that he would lay off 80,000 VA workers with many of those being Veterans. He also didn’t promise a stock market correction due to reaction to his tariffs. Mr. Fagan, when did firing park rangers, scientists, and air traffic controllers become a better idea than simply taxing billionaires?
Sadly this is just another version of the same old LNG pipe(line)dream.
The gas pipeline is a huge deal, should have been built with the original oil pipeline. Instead of using state oil revenues to leverage with investors to build roads and a gas pipeline all Juneau did was build a massive, parasitic state government.
This is the time to lobby this new administration to obtain the right of ways through the federal fiefdoms to build roads and railroads to the locations of concentrated natural resources, locked up until now.
There is also talk of the US and Russia jointly reopening Nordstream II to bring natural gas into Europe. A further source of income and before those countries decay into further anarchy and uselessness. And other exciting possible joint economic projects in the Arctic.
It appears there is the first light visible, as in the early dawn sky, from the darkness of a long, bitter night of oppression from a morbidly corrupt ruling class that has had a stranglehold on our country and state.
Our media outlets in AK are very negative with ‘anything Trump’ this tariff/pipeline is so common sensical and probably the impetus necessary to get this thing going. It’s just hard for national and local media to recognize this guy has a knack for business, not bureaucracy. The Hate Trump over love your state (country) TDS mindset has partnered with the left’s negativity. Particularly in the once red turning purple and likely blue Anchorage. Anchorage, when you plug in the equation of Homelessness, School Board, Assembly into cities all across this nation you get negativity, population, media, schools, jobs etc.! Frankly, I don’t like Trump but his can do attitude is commendable and much needed in our state as an ally. He recognizes our state’s potential.
This is so much fun!!!
I know you had to be just giddy watching all those sour faced Dems during the speech. I mean, I could be the easiest purest of pure were I in the priesthood looking at those pouting Ladies.
Make a guy think twice on this “I wana be” sex thing as an option. Just saying.
Cheers, Johnson-Ketchikan
They certainly did have a shriveling effect.
While a gas line would undoubtedly be great for Alaska having it compete on anything other than free market value will doom the project in the future. Trump’s understanding of trade and tariffs is severely lacking. As long as transactions are between free and willing parties there can’t be an imbalance. Both parties get something in return and agree to the value. Under Trump’s reasoning you would have a “trade imbalance” with the grocery store too. The high cost of getting the gas to the shipping point is what makes the project hard to pencil out. At the end of the day fiddling with markets through tariffs or the response to them is always a net loss to all involved. Sad that ‘conservatives’ have forgotten this.
Joe,
You should tell that to all the countries we have free trade agreements with that are putting tariffs on the goods we send them…hence what Trump is doing by trying to level the playing field. He is trying to get countries that are adding tariffs to our goods sold in their countries to drop those tariffs. Those countries send us more goods than we send them, that is the imbalance that you are missing and that Trump and every economist acknowledges exists. If we send $100 of goods to another country and they send $1,000 to us there is an imbalance of $900, it’s basic math.
Your understanding of how trade and tariffs work is certainly interesting take. It isn’t based in math, logic, or economics but it sure is interesting. I really like the grocery store trade imbalance part too, it has nothing to do with the conversation but it sure is telling!
Free trader.
Endless wars.
Open borders.
NeoCon much?
Free trader.
Endless wars.
Open borders.
NeoCon much?