Investing.com — President-elect Donald Trump has issued a warning to the European Union (EU), threatening its exports with U.S. tariffs if its member states do not increase their purchases of U.S. gas. Trump made the statement on Truth Social, saying the EU must offset its large trade deficit with the United States by buying more American oil and gas or face tariffs.
The United States is currently the world's largest producer of crude oil and the largest exporter of liquefied gas (LNG). Several LNG buyers, including the EU and Vietnam, have expressed interest in purchasing more fuel from the United States, in part to avoid possible tariffs.
In 2022, the U.S. trade deficit in goods and services with the EU was $131.3 billion, according to the Office of the U.S. Trade Representative. Following Trump's election victory last month, the EU is bracing for a potential trade offensive.
The EU was caught off guard in 2017 when Trump imposed tariffs on European steel and aluminum, citing national security concerns during his previous presidential term. In response, the EU has overhauled its trade doctrine and expanded its tools, offering a variety of options to counter such measures.
German Foreign Minister Annalena Baerbock said after a Group of Seven meeting in Italy in late November that the EU is ready for possible changes under the new US administration. If the US administration prioritizes its “America first” policy in the climate or trade sectors, the EU's response will be “United Europe”.
European Commission President Ursula von der Leyen suggested last month that the EU could replace its consumption of Russian LNG with imports from the United States. She mentioned this after a phone call with Trump, saying American LNG is cheaper and could lower energy prices in Europe.
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