Trump Warns EU on Tariffs

President-elect Donald Trump has issued a warning to the European Union (EU) regarding potential US tariffs on their exports. He stated that EU member states must increase their purchases of American oil and gas to offset their significant trade deficit with the US, or they will face tariffs.

Currently, the US is the world’s leading producer of crude oil and the largest exporter of liquefied natural gas (LNG). Several LNG buyers, including the EU and Vietnam, are interested in purchasing more fuel from the US to avoid these tariffs.

In 2022, the US goods and services trade deficit with the EU was reported to be $131.3 billion by the US Trade Representative's office. Following Trump's recent electoral victory, the EU is preparing for a possible trade counteroffensive.

The EU was unprepared when Trump imposed tariffs on European steel and aluminum in 2017, citing national security reasons. In response, the EU has revised its trade strategies, expanding its options to address such trade measures.

German Foreign Minister Annalena Baerbock mentioned after a Group of Seven meeting that the EU is prepared for changes under the new US leadership. If the US adopts its 'America first' approach in areas like climate or trade, the EU's response will be 'Europe united.'

European Commission President Ursula von der Leyen recently indicated that the EU could replace its reliance on Russian LNG with imports from the US, especially if American LNG can provide lower energy costs for Europe.

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