US President-elect Donald Trump has warned the European Union, threatening to impose tariffs if its member states fail to increase their purchases of American oil and gas.
“I told the European Union that they must address their tremendous trade deficit with the United States through large-scale purchases of our oil and gas. Otherwise, it’s TARIFFS all the way!!!” Trump stated on Truth Social.
As the world’s largest crude oil producer and a leading exporter of liquefied natural gas (LNG), the United States has seen interest from buyers like the EU and Vietnam in securing more American energy to avoid potential tariffs.
Following Trump’s election victory, EU officials and member states are bracing for a possible trade conflict. During his previous presidency, the bloc faced tariffs on steel and aluminium, prompting a reassessment of its trade strategies and countermeasures against coercive practices.
German Foreign Minister Annalena Baerbock, addressing these potential challenges after a G7 meeting in Italy, stated, “If the new US administration pursues a ‘United States first’ policy in climate or trade, our response will be ‘Europe united.’”
European Commission President Ursula von der Leyen has noted that US LNG could replace Russian imports, particularly as the EU seeks to reduce reliance on Moscow amid the ongoing war in Ukraine. “We still receive significant LNG from Russia. Why not replace it with American LNG, which is cheaper and lowers our energy prices?” she remarked after discussions with Trump.
While the US is already Europe’s largest LNG supplier, Russia remains a key source of imports. EU officials are exploring ways to diminish Moscow’s influence, but stricter energy restrictions on Russia remain complex.
To prepare for potential trade disputes with Washington, the EU has strengthened its defenses, introducing measures like the anti-coercion instrument, which allows retaliatory tariffs, and foreign subsidies regulations to counter unfair advantages enjoyed by foreign companies.
Trump has long criticized the EU over issues like defense spending and trade deficits, targeting countries like Canada, China, and the EU for imbalances. With Europe accounting for over half of US LNG exports last year, it remains central to American energy trade.
As the EU braces for potential trade clashes, Trump’s aggressive trade approach underscores the challenges ahead for transatlantic relations under his leadership.
