U.S. President-elect Donald Trump has issued a stark warning to the European Union (EU), threatening to impose tariffs if member states fail to significantly increase their purchases of American oil and gas.
Trump announced his position on Truth Social, stating, “I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!”
The United States, recognized as the world’s largest crude oil producer and a leading exporter of liquefied natural gas (LNG), has positioned itself as a key energy supplier to global markets, including Europe. Trump’s latest ultimatum follows his history of targeting trade imbalances during his previous administration, which saw tariffs imposed on European steel and aluminum imports.
EU officials are now bracing for potential trade disputes under Trump’s leadership. The bloc has already faced similar challenges, prompting a reevaluation of its trade policies and countermeasures against coercive practices.
European Commission President Ursula von der Leyen has suggested that increased imports of U.S. LNG could help the EU reduce its dependence on Russian energy, a strategic priority given the ongoing war in Ukraine.
“We still get a whole lot of LNG via Russia. Why not replace it with American LNG, which is cheaper and brings down our energy prices,” von der Leyen said following discussions with Trump.
Although the U.S. is already Europe’s largest LNG supplier, Russia remains a significant source of energy imports. Efforts to impose stricter limits on Russian energy face logistical and economic hurdles.
To mitigate potential fallout, the EU has fortified its defenses with tools like the anti-coercion instrument, enabling the bloc to impose tariffs or other penalties in response to politically motivated trade restrictions. Additionally, regulations targeting foreign companies benefiting from state subsidies aim to counter unfair competition.
German Foreign Minister Annalena Baerbock emphasized unity among EU member states, saying, “If the new US administration pursues a ‘United States first’ policy in the sectors of climate or trade, then our response will be ‘Europe united.’”
Europe remains a critical market for American energy, accounting for over half of U.S. LNG deliveries last year. Trump’s hardline approach underscores the importance of energy trade in transatlantic relations and the challenges of balancing economic and geopolitical priorities.
As the EU navigates these evolving dynamics, Trump’s renewed focus on trade imbalances and energy policy sets the stage for potential friction between Washington and Brussels in the coming years.
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