‘Buy More American Oil, Gas or Face Higher Tariffs,’ Trump Warns EU Countries

U.S. President-elect Donald Trump has warned European Union (EU) nations that they must significantly increase their purchases of American oil and gas or face higher tariffs.

Trump took to Truth Social, the platform owned by his media company, to announce:

“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!!!”

This statement highlights Trump’s ongoing use of tariff threats as a tool to address trade imbalances, a stance he has maintained since his tenure as president.

Trade Imbalance and Tariff Threats

Trump’s rhetoric follows his past tactics of leveraging tariffs to challenge what he perceives as unfair trade practices. Recently, he also threatened a 25% tariff on all imports from Canada and Mexico unless those countries implemented stricter measures on drug trafficking and border control.

These new threats have raised alarms among business leaders globally, with fears that the mere suggestion of tariffs could deter investment, cause job losses, and destabilize international markets. Following Trump’s comments, European stocks saw a sharp decline, while U.S. stocks also dipped in premarket trading.

Economists expressed concern that new tariffs could aggravate inflation and lead to a global economic crisis, especially as markets have yet to stabilize from previous challenges.

U.S. Energy Exports to Europe

Despite Trump’s emphasis on increasing fossil fuel exports, the U.S. is already Europe’s largest supplier of liquefied natural gas (LNG). In fact, the U.S. has become an essential energy partner for Europe, particularly as the region seeks to reduce its dependence on Russian gas following the Ukraine war.

However, Trump has often criticized trade deficits, particularly those with Europe, seeing them as evidence of unbalanced trade practices. While Europe does export more to the U.S. than it imports, the trade deficit with the EU is less pronounced compared to the U.S.’s larger deficits with countries like China, Canada, and Mexico.

The Push for Increased Fossil Fuel Production

Trump’s remarks are consistent with his campaign promises to ramp up American fossil fuel production by loosening regulations on drilling and fracking. His latest statements underscore his broader strategy of reducing the U.S. trade deficit by pressuring foreign nations to increase their purchases of U.S. energy resources.

Impact on Global Trade and Stability

The threat of a trade war and the potential for higher tariffs have introduced new uncertainties into the global economy. Business leaders and policymakers now face mounting concerns about the potential ramifications of Trump’s aggressive trade tactics and their impact on international trade and market stability.