“I told the EU they have to cover their huge deficit with the United States by buying our oil and gas on a massive scale. Otherwise, it’s tariffs!!
The United States is the world’s largest crude oil producer and largest exporter of liquefied natural gas. LNG buyers including the European Union and Vietnam have discussed buying more fuel from the United States, in part to stem the threat of tariffs.
EU officials and member states have been preparing for a trade offensive since Trump won the election last month.
In 2017, Trump caught the EU by surprise when he imposed tariffs on European steel and aluminum, citing national security concerns during his previous term. Since then, the EU has reformulated its trade principles and expanded its toolbox, giving it a range of options for dealing with coercive practices.
German Foreign Minister Annalena Baerbock said after the G7 meeting in Italy at the end of November: “We are fully prepared for the situation that may be different after the new US administration comes to power.” “If If the new US administration pursues an “America First” policy in the area of climate or trade, then our response will be “European solidarity.” European Commission President Ursula von der Leyen proposed this idea last month: Imports from the United States. Product Possible Von der Leyen said after the phone call with Trump that LNG “was one of the topics we talked about.” “We still get a lot of LNG from Russia through Russia. Why not replace it with American LNG, which is cheaper and brings down our energy prices.
The United States is already Europe’s largest supplier of LNG, but imports from Russia remain firmly in second place. As the war in Ukraine drags on, EU officials are looking for ways to curb Moscow’s role, although Russian pipeline gas and liquefied natural gas are largely exempt from sanctions. A person familiar with the matter said on condition of anonymity that the EU would explore possible measures when it discusses a new sanctions package next month, but tight restrictions would still be difficult.
But the EU remains prepared for the possibility of an eventual trade war with Washington. The EU’s new anti-coercion instrument strengthens trade defenses and enables the EU’s executive arm, the Commission, to impose tariffs or other punitive measures in response to such politically motivated restrictions.
The EU also passed a so-called foreign subsidies regulation that allows the Commission to prevent foreign companies that receive unfair state subsidies from participating in public tenders or mergers and acquisitions transactions in the EU, among other measures.
Trump has multiple grievances with the EU and has criticized Europe’s lack of spending on defense and the U.S.-EU trade deficit. He has called Brussels, home to EU institutions, hell and recently said he told a Nato member he would let Russia “do whatever it wants” if it didn’t.
Trump has threatened to impose tariffs on countries from China to Canada, with a special focus on countries with trade deficits with the United States. Europe has become the largest destination for U.S. LNG, with more than half of last year’s deliveries going to the continent.
Over the past decade or so, the United States has also become a major exporter of crude oil, exporting so-called light and medium-density varieties to Canada and countries in Europe and Asia.