Investing.com -- President-elect Donald Trump warned that the European Union (EU) must significantly increase its purchases of American oil and gas or face tariffs on European imports.
“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 wrote on his Truth Social platform on Friday.
Having secured a second term in last month’s presidential election, Trump is preparing to reintroduce tariffs as a key element of his economic strategy when he returns to the White House next month.
He has already vowed to raise duties on imports from China, the country with which the US has its largest trade deficit. Furthermore, he has promised new tariffs on allies, including Canada, Mexico, and Europe, as part of an effort to boost American manufacturing.
The US is the largest market for European Union goods, representing nearly 20% of the bloc's total exports.
The country’s largest trade deficit with the EU is in machinery and vehicles, amounting to 102 billion euros ($106 billion) in 2023. However, in energy trade, the US held a surplus with the EU, valued at 70 billion euros.
As the world’s leading oil producer, the US accounted for 22% of the global oil supply in 2023, according to the US Energy Information Administration. The agency also forecasts record-breaking crude oil production in 2024.
Producers are expecting further growth in supply under a Trump administration, which is likely to prioritize deregulation in the energy sector.
The EU has signaled plans to increase its energy imports from the United States in the coming years.
European Commission President Ursula von der Leyen recently stated that replacing Russian liquefied natural gas (LNG) with US supplies would be more cost-effective. She also noted that the EU intends to engage and negotiate further on the issue once President-elect Donald Trump assumes office in 2025.