(Updated with reaction from the European Commission)
The European Union could face higher tariffs if it does not reduce its growing trade deficit with the United States by increasing its purchases of American oil and gas, President-elect Donald Trump said Friday.
“I told the European Union that it must make up its huge deficit with the United States by purchasing our oil and gas on a large scale,” ati wrote on his social network Truth Social.
“Otherwise, customs duties apply!!!!”, he added.
Donald Trump, who will be inaugurated on January 20, has already threatened to impose tariffs on three of the United States’ main trading partners: Canada, Mexico and China.
The European Commission said it was ready to discuss with the president-elect how to strengthen already strong relations, notably in the energy sector.
“The EU is committed to phasing out energy imports from Russia and diversifying its sources of supply,” said a spokesperson for the EU executive.
The United States already supplied 47% of the EU’s liquefied natural gas (LNG) imports and 17% of the bloc’s oil imports in the first quarter of 2024, according to data from statistical office Eurostat.
Europe’s refining industry is owned by the oil majors and trading companies, and governments have no say in supply. Groups tend to buy based on price and effectiveness.
U.S. oil and natural gas exports flow to Europe when market conditions make these purchases more attractive relative to competing producers.
U.S. crude exports to Europe amount to more than two million barrels per day (bpd), accounting for more than half of total U.S. exports, with the remainder going to Asia.
The Netherlands, Spain, France, Germany, Italy, Denmark and Sweden are the largest importers of U.S. crude, according to U.S. government data.
(Reporting by Rishabh Jaiswal, Mrinmay Dey in Bangalore, Dmitry Zhdannikov in London, Philip Blenkinsop and Jan Strupczewski in Brussels; French version Diana Mandiá; edited by Augustin Turpin)
