Trump Warns EU on Oil and Gas Purchases

Investing.com – President-elect Donald Trump has issued a warning to the European Union (EU) to significantly increase its purchases of American oil and gas or face tariffs on European imports.

> “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!!!” Trump stated on his Truth Social platform on Friday.

With his recent victory in the presidential election, Trump is preparing to reintroduce tariffs as a key strategy for his economic policy once he returns to the White House next month.

He has pledged to raise duties on imports from China, the country with which the US has its largest trade deficit. Additionally, he has promised to impose new tariffs on allies, including Canada, Mexico, and Europe, in an effort to bolster American manufacturing.

The US accounts for nearly 20% of the EU's total exports, marking it as the largest market for European goods.

In terms of trade deficits, the US has its largest shortfall with the EU in machinery and vehicles, totaling 102 billion euros ($106 billion) in 2023. However, the US maintains a surplus in energy trade with the EU, valued at 70 billion euros.

As the world's leading oil producer, the US contributed to 22% of the global oil supply in 2023, according to the US Energy Information Administration. Projections indicate record-breaking crude oil production for 2024.

Producers expect further growth in supply under the Trump administration, which is anticipated to prioritize deregulation in the energy sector.

The EU has expressed intentions to increase its energy imports from the US in the upcoming years. European Commission President Ursula von der Leyen stated that replacing Russian liquefied natural gas (LNG) with US supplies would be more cost-effective. She added that the EU plans further negotiations on energy once President-elect Trump takes office in 2025.