The elected president of USA, Donald Trump, warned the European Union (EU) on Friday that it must reduce its trade deficit with the United States through the massive purchase of oil and gas, or face the imposition of tariffs.
In a message posted on his Truth Social platform, Trump said: “I told the European Union that they must make up their huge deficit with the United States by purchasing our oil and gas on a large scale.. Otherwise it will be TARIFFS all the way!”
Currently, the EU maintains a trade surplus with the US, with exports exceeding imports by around 20 billion euros, according to the latest data available for October.
In the energy context, Washington is the world’s largest oil producer and a key exporter of liquefied natural gas (LNG), especially to Europe, which is its largest importer. U.S. LNG exports have grown sharply since the Russia-Ukraine crisis, which reduced Russian gas supplies to Europe. In 2023, the United States represented 48% of European imports, up from 44% in 2022 and 27% in 2021.
Threat or strategy?
Trump’s proposal to increase tariffs has been one of the pillars of his campaign to return to the White House. During his previous term, Trump already proposed imposing higher tariffs on American imports, bringing them in line with those other countries impose on American exports. In this sense, he suggested establishing a universal basic tariff of between 10% and 20%, which could rise to 60% in the case of products from China.
In addition, Trump has signaled that he would protect the US auto industry by applying severe tariffs, proposing an increase of up to 100% on cars imported from Mexico and a doubling of tariffs on Chinese electric cars to up to 200%.
His predecessor, Joe Biden, had already increased tariffs on Chinese cars in September, raising them from 25% to 100%, in addition to increasing taxes on products such as lithium-ion batteries and photovoltaic solar cells.
Analysts are cautious about the uncertainty generated by Trump’s trade plans. It is questioned to what extent he will be willing to carry out these policies and whether his rhetoric is simply a starting point for future negotiations. “Trump’s ‘scorched earth’ approach has fueled fears of a trade war, with investors increasingly concerned that Europe may be next in his sights,” said Matt Britzman, an analyst at Hargreaves Lansdown.
Some observers believe Trump’s threats are actually negotiating tactics. Scott Bessent, the new US Treasury secretary, suggested that Trump’s plans could change once he is in power, noting that his strategy is to raise tensions and then reduce them. On the other hand, former Italian Prime Minister Enrico Letta described Trump’s proposal as a “transactional approach” that mixes energy issues and trade in goods. According to Letta, EU countries must be prepared to respond to this approach, and in a more asymmetric financial environment, they could explore alternatives in that area.
From another perspective, Kathleen Brooks, director of analysis at XTB, observed that Trump’s threats have been linked to accusations of social problems in the United States, such as drug trafficking or immigration. This has added a new dimension to trade tensions, which could increase risks in global markets in 2025.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
