Oil and natural gas production has jumped significantly in the United States in recent years, as have exports of liquefied natural gas, or LNG, to countries like China. But China's new 10 percent tariff on American LNG exports - in retaliation for US tariffs -- will likely impact trade between the two countries and affect exporting states like Texas and Louisiana. CGTN's Hendrik Sybrandy reports from Houston, Texas.

Houston is known as the "Energy Capital of the world". Where oil once stood tall in this city and in the Texas economy, natural gas now offers huge opportunities for growth. Liquefied natural gas exporters have found an eager customer in China.

MICHAEL MAHER BAKER INSTITUTE, RICE UNIVERSITY "As they grow their economy, they want to meet that growth more with natural gas, renewables, less with coal."

Michael Maher with Rice University's Baker Institute says while U.S. LNG exports quadrupled in 2017 over the year before, exports to China were six times as high during that same time period. China's new 10 percent tariff on American LNG means that trend is unlikely to continue.

MICHAEL MAHER BAKER INSTITUTE, RICE UNIVERSITY "It will have neither a large impact on China or the American LNG producers."

Because Maher expects China to buy more LNG from places like Qatar and Australia in the short term, and the U.S. to sell more to Japan, Korea and Europe.

STEVE PRESSMAN COLORADO STATE UNIVERSITY "I think the big negative consequences are going to come in the long run."

Colorado State University's Steve Pressman says tariffs inject uncertainty into the economy, which companies don't like.

STEVE PRESSMAN COLORADO STATE UNIVERSITY "There's just no telling where tariffs are going to be placed and when and that just makes doing business a whole lot more difficult."

Maher believes new LNG export terminals may be more difficult to build in the future.

MICHAEL MAHER BAKER INSTITUTE, RICE UNIVERSITY "Usually you have to get outside financing and they like to see those terminals backed at least by some long-term contracts. To the extent China is reluctant to sign anything with the U.S. because of the tariffs that could slow down some projects."

Only a few facilities currently export LNG in Texas and neighboring Louisiana. But a number of projects are on their way to completion. Already imposed tariffs on imported steel and aluminum have made their presence felt.

EDDY HAYES LOUISIANA TRADE ATTORNEY "We're talking about multi-billion dollar investments and any change in the economics of those projects could put them in jeopardy and that's something we take very seriously down here in Louisiana."

LNG companies we contacted would not comment on the new tariff. In a statement, the Louisiana Energy Export Association said it "represents an industry that trades in a global commodity and embraces free trade practices".

HENDRIK SYBRANDY HOUSTON "The LNG industry is appealing to places like Texas because once terminals are up and running, lots of property tax dollars start flowing, without a big impact on state and local services."

New export projects would help ease the glut of natural gas that's kept the price of this commodity relatively low. Maher worries prices will stay low if tariffs slow global economic growth and cause countries like China to consume less energy.

MICHAEL MAHER BAKER INSTITUTE, RICE UNIVERSITY "That means the world will need to supply less, that will come back to impact the United States' producers of LNG."

Until recently, he says, oil and gas were some of world's most freely traded global commodities. Places like Houston benefited. Will that still be true in the future? Hendrik Sybrandy, CGTN, Houston.