Trump’s Trade Tariff Threat Against EU Over Oil and Gas Purchases

Trump’s Tariff Ultimatum: Aimed at EU’s Energy Purchases
Donald Trump, the US president-elect, has renewed his threats of imposing tariffs on the European Union unless the bloc significantly increases its purchases of American oil and gas. In a social media post on Truth Social, Trump called on the EU to “make up” its trade deficit with the US by buying large quantities of US oil and gas, or face “TARIFFS all the way.” This warning comes as the EU’s demand for energy supplies has shifted in recent years, especially following the war in Ukraine, which prompted Europe to seek alternatives to Russian energy.

EU Diplomacy in Response: Trade Surplus with US and Energy Ties
European Commission officials have largely dismissed Trump’s tariff threat. They emphasized that the EU currently maintains a substantial trade surplus in goods with the US, while the US enjoys a surplus in services, particularly in sectors such as technology and finance. European Commission spokespersons stressed that the EU is open to continued discussions with the US on strengthening their energy ties, which have grown significantly in recent years. Olof Gill, a trade spokesman for the Commission, reiterated that the EU seeks to build on its strong relationship with the US, with a focus on mutual interests in energy and trade.

Increased US Energy Imports to EU Amid Russian Gas Withdrawal
Europe’s energy imports from the US have surged as the EU continues to reduce its dependence on Russian energy, following the invasion of Ukraine. The US has become a key supplier of both liquefied natural gas (LNG) and oil to Europe. As of the third quarter of this year, the US was the largest source of non-pipeline gas and petroleum, accounting for over 15% of EU oil imports and nearly 38% of the bloc’s LNG imports. Total US gas exports to the EU, including both LNG and pipeline gas, now account for about 20% of the EU’s total demand, second only to Norway, which supplies 30% of EU gas.

EU’s Ongoing Energy Cooperation with the US
While Trump’s ultimatum may seem dramatic, the EU has continued to foster its energy relationship with the US. Over the past three years, LNG imports from the US have grown significantly, with American energy playing a crucial role in Europe’s efforts to diversify its energy sources. EU officials have acknowledged that they remain committed to discussions on further strengthening the energy partnership, but also warned against the potential escalation of trade tensions. The EU has shown its willingness to work with the US on energy cooperation, while also ensuring that its own strategic interests are preserved.