Trump threatens the EU with tariffs if it does not increase US oil and gas purchases
Kyiv • UNN
Donald Trump has announced that he may impose tariffs on European goods if the EU does not increase purchases of American energy. The EU is already the largest buyer of US oil and gas after abandoning Russian resources.
US President-elect Donald Trump said on Friday that the EU could face tariffs if the bloc does not reduce its growing deficit with the US by making major oil and gas deals with the world's largest economy, UNN reports citing Reuters.
Details
The EU already buys the lion's share of US oil and gas exports, according to US government data, and there will be no additional volumes unless the US increases production or volumes are redirected from Asia, another major US energy consumer, the newspaper writes.
"I told the European Union that they should make up their huge deficit with the United States by buying our oil and gas on a large scale," Trump said in a post on Truth Social.
"And if not, then DUTIES in full!!!" Trump wrote.
The European Commission was not available for comment.
Trump has promised to impose tariffs on most, if not all, imports, and has said that Europe will pay a high price for its large trade surplus with the United States for decades.
Trump, who takes office on January 20, has already promised to impose high tariffs on the three largest US trading partners - Canada, Mexico, and China.
Most European oil and gas companies are privately owned, and governments have no say in where purchases come from, unless the authorities impose sanctions or duties, owners typically buy their resources based on price and efficiency.
The EU has sharply increased its purchases of American oil and gas following the bloc's decision to impose sanctions and reduce its dependence on Russian energy following Moscow's invasion of Ukraine in 2022.
In recent years, the United States has become the largest oil producer, producing more than 20 million barrels per day of liquid petroleum products, or a fifth of global demand.
Crude oil exports from the US to Europe reach more than 2 million barrels per day, accounting for more than half of total US exports, with the rest going to Asia. The Netherlands, Spain, France, Germany, Italy, Denmark, and Sweden are the largest importers, according to the US government.
The United States is also the world's largest producer and consumer of gas, with production of more than 103 billion cubic feet (2.9 billion cubic meters) per day.
The US government forecasts that US liquefied natural gas (LNG) exports will average 12 billion cubic feet (340 million cubic meters) in 2024.
In October, the EU had a trade surplus of €3.9 billion with the rest of the world, down from €8.4 billion in October 2023. The EU's trade with the United States, the bloc's main trading partner, posted an overall surplus of €20.3 billion in October, up from €16.8 billion 12 months earlier.
The EU's exports are dominated by Germany, whose main products are cars, equipment, and chemicals.
