US president-elect Donald Trump has issued a stark warning to the European Union, demanding that it make substantial purchases of American oil and gas or face the imposition of tariffs.
In a post on his Truth Social platform on Friday, Trump stated, “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!!!”
The threat comes after previous discussions between the EU and the US about expanding European imports of liquefied natural gas (LNG), a critical energy source for Europe in the wake of reduced fossil fuel supplies from Russia following its invasion of Ukraine.
European Commission President Ursula von der Leyen had suggested in November that the EU might increase LNG purchases from the US, noting the potential benefits of cheaper American gas to help bring down Europe’s energy costs. “We still get a lot of LNG from Russia, and why not replace it with American LNG, which is cheaper for us and brings down our energy prices?” von der Leyen told reporters.
One EU official remarked that Trump’s threat appeared inconsistent with von der Leyen’s remarks, given that the EU had already signaled its willingness to purchase more US energy.
This latest rhetoric from Trump follows his longstanding stance on tariffs. The former president had previously proposed a blanket tariff of up to 20 percent on all non-Chinese imports. Last month, European Central Bank President Christine Lagarde urged European leaders to collaborate with the US on tariffs, advocating for greater purchases of American-made goods.
During Trump’s first term, European leaders, including former European Commission President Jean-Claude Juncker, sought to avert a trade war by offering to buy more US gas.
Brussels-based think tank Bruegel has suggested that the EU should back any offers to purchase more American energy with a “credible threat of retaliation” in case the US moves forward with tariffs on EU exports.
Meanwhile, international oil prices showed slight declines on Friday, with Brent crude falling 0.4 percent to $72.61 per barrel, and West Texas Intermediate futures down by 0.4 percent at $69.14 per barrel.