Trump Warns EU to Boost U.S. Oil and Gas Imports or Face Tariff

PALM BEACH, FLORIDA – U.S. President-elect Donald Trump has issued a stark ultimatum to the European Union, urging the bloc to increase imports of American oil and gas or risk facing tariffs on key exports, including automobiles and machinery.

The European Union already constitutes the largest buyer of U.S. oil and gas exports, according to official government data. However, with the U.S. exporting energy at full capacity, additional supplies remain unavailable for the time being. Trump has nonetheless committed to expanding the nation's energy production to meet future demand.

"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," Trump wrote on Truth Social. "Otherwise, it is TARIFFS all the way!"

In response, a spokesperson for the European Commission expressed the EU’s readiness to engage in discussions aimed at bolstering the already robust trade relationship between the two parties, particularly in the energy sector.

"The EU is committed to phasing out energy imports from Russia and diversifying our sources of supply," the spokesperson said.

According to Eurostat, the U.S. accounted for 47% of the EU’s liquefied natural gas (LNG) imports and 17% of its oil imports in the first quarter of 2024.

Trump, who will assume office on January 20, has repeatedly criticized the EU for its trade surplus with the United States, which stood at $208.7 billion in 2023, according to the U.S. Census Bureau. While the U.S. maintains a trade surplus in services, Trump has focused his grievances on goods trade, particularly automobile exports.

Currently, German and Italian cars face a 2.5% tariff in the U.S., a rate that could quadruple if Trump’s threats materialize. The President-elect has also proposed broader tariffs, including a 10% levy on global imports and a 60% tariff on Chinese goods, actions that experts warn could disrupt global trade, increase costs, and provoke retaliation against U.S. exports.

William Reinsch, a trade expert at the Center for Strategic and International Studies, suggested that the EU might find room to negotiate. "This could be a win-win, telling them to buy something they want and need anyway," Reinsch said.

As the U.S. prepares to expand its energy production under Trump’s leadership, the evolving dynamics of transatlantic trade will likely take center stage in early 2025.