President-elect Donald Trump has threatened to impose tariffs on the European Union unless the bloc commits to “significant” purchases of American oil and gas. The ultimatum comes just days after Republican leaders warned BRICS countries of strong sanctions if they choose to challenge the dollar.
“I told the European Union that it must make up for its huge deficit with the United States with massive purchases of oil and gas. Otherwise it’s tariffs forever!!!” Trump said of his I wrote this on the Truth Social platform.
EU countries are already discussing possible additional purchases as they seek to avoid a trade war with the next president. Bloc officials said they were ready to explore ways to strengthen their already strong relationship with the president-elect, including in the energy sector.
The European Union has significantly increased its purchases of U.S. oil and gas over the past three years amid the war between Russia and Ukraine. The group already buys the majority of U.S. oil and gas exports, according to a Reuters report citing U.S. government data. Currently, additional volumes are not available unless the U.S. increases production or reroutes it from Asia.
Eurostat data also showed that the US supplied 47% of the European Union’s LNG imports and 17% of its oil imports in the first quarter of 2024. The country has grown into the largest oil producing country in recent years, with more than 20 oil production volumes. The volume of liquid oil per day is 1 million barrels, equivalent to one-fifth of global demand.
But most of Europe’s oil refiners and gas companies are privately owned, and governments have no say in who buys unless authorities impose sanctions or tariffs. Owners typically purchase resources based on price and efficiency.
The remarks came just weeks after the incoming US president, who takes office in January, threatened to impose 100% tariffs on BRICS countries if they try to replace the US dollar with another currency. The group was also asked to provide a commitment not to create a new BRICS currency or support another currency against the dollar.
President Trump has also made sweeping threats to impose tariffs on U.S. trading partners such as Canada, Mexico and China, which could have ripples throughout the global economy.
(Information provided by agency)
