Trump threatens tariffs if EU doesn’t buy more oil, gas

U.S. President-elect Donald Trump delivers remarks at Mar-a-Lago in Palm Beach, Florida, U.S. File.
| Photo Credit: Reuters

U.S. President-elect Donald Trump on Friday (December 20, 2024) threatened the European Union with tariffs if the bloc does not reduce its “tremendous” trade gap with Washington through oil and gas purchases.

“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,” Mr. Trump said in a post on his Truth Social platform in the early hours of Friday.

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“Otherwise, it is TARIFFS all the way!!!”

According to U.S. figures, goods imports from the EU were $553.3 billion in 2022, while its exports to the bloc were $350.8 billion.

This puts the U.S. goods trade deficit with the EU at $202.5 billion that year.

EU chief Ursula von der Leyen had already suggested to Trump in November that the United States could supply more liquefied natural gas to the bloc to replace Russian energy.

Replying to questions on Trump’s threat on Friday, an EU spokesman said the 27-nation bloc was open to talks, noting that the U.S. also enjoyed “a substantial trade in services surplus vis a vis the EU”.

“We are ready to discuss with President-elect Trump how we can further strengthen an already strong relationship, including by discussing our common interests in the energy sector,” EU spokesman Olof Gill told a press briefing.

Trump, who takes office in January, has made sweeping threats of slapping tariffs on U.S. trading partners — including Canada, Mexico and China — which could send reverberations across the global economy.

Accusing Canada and Mexico of allowing the United States to be flooded with illicit drugs and undocumented migrants, he had threatened a 25% import tariff, while vowing at least 10 percent against China, Washington’s Asia-Pacific rival.

Earlier this month, the European Union concluded a massive trade deal with four South American countries — Argentina, Brazil, Paraguay and Uruguay — which aims to create a 700-million-customer free-trade area.

Ms. Von der Leyen had said the agreement would build trade bridges as “strong winds are blowing in the opposite direction, towards isolation and fragmentation” — comments largely seen as a nod to Trump’s threats to hike tariffs.

Some analysts have said Trump’s tariff threats could be bluster, or an opening shot for leverage in future trade negotiations when he comes into office.

But Trump has continually insisted that “properly used” tariffs would be positive for the US economy.

“Our country right now loses to everybody,” he told reporters at his Florida residence earlier this week. “Tariffs will make our country rich.”