Saturday, December 21, 2024 - US President-elect Donald Trump has issued a warning to the European Union, threatening tariffs if its member countries do not increase their purchases of American oil and gas.
“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!!!,” Trump declared on Truth
Social.
The United States, currently the world’s largest crude oil
producer and leading exporter of liquefied natural gas (LNG), has already seen
interest from buyers like the EU and Vietnam in securing more American energy
resources to potentially avoid the imposition of tariffs.
EU officials and member states have been bracing for a
potential trade conflict following Trump’s recent election victory. The bloc
previously faced tariffs on steel and aluminum during Trump’s earlier
presidency, prompting a reevaluation of its trade strategies and the expansion
of its countermeasures against coercive trade practices.
German Foreign Minister Annalena Baerbock, speaking after a
G7 meeting in Italy last month, addressed the possible challenges under the new
administration. “If the new US administration pursues a ‘United States first’
policy in the sectors of climate or trade, then our response will be ‘Europe
united,’” she said.
European Commission President Ursula von der Leyen has
suggested that US LNG could replace Russian imports, especially as the EU seeks
to reduce its reliance on Moscow amid the ongoing war in Ukraine. “We still get
a whole lot of LNG via Russia, from Russia. And why not replace it with
American LNG, which is cheaper, and brings down our energy prices,” von der
Leyen said after a conversation with Trump.
While the US is already Europe’s largest LNG supplier,
Russia remains a significant source of imports. EU officials are exploring
measures to reduce Moscow’s influence, but stringent restrictions on Russian
energy remain challenging.
To prepare for potential trade disputes with Washington, the
EU has bolstered its defenses through measures like the anti-coercion
instrument, which allows the bloc to impose tariffs or punitive measures in
response to politically motivated trade restrictions. Additionally, the EU’s
foreign subsidies regulation enables action against foreign companies
benefiting from unfair state subsidies.
Trump has frequently criticized the EU over issues ranging
from defense spending to the trade deficit. He has targeted countries with
trade imbalances, including Canada, China, and the EU. Europe, a major
destination for US LNG and crude oil exports, is already central to American
energy trade, with more than half of US LNG deliveries going to the continent
last year.
As the EU continues to prepare for possible trade
confrontations, Trump’s aggressive trade stance highlights the challenges ahead
for transatlantic relations under his administration.
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