Trump issues oil ultimatum to EU
Date
12/24/2024 7:08:06 AM
(MENAFN) President-elect Donald trump has issued an ultimatum to the European Union, demanding it reduce its trade deficit with the U.S. by increasing purchases of American oil and gas. If the EU does not comply, Trump warned, tariffs could be imposed. In a post on the Truth Social platform, Trump stated that the EU should address its significant trade deficit, which reached €156 billion ($162 billion) in 2023, by purchasing large quantities of U.S. oil and gas.
According to Eurostat data, the U.S. already supplies 47% of the EU's liquefied natural gas (LNG) imports and 17% of its oil purchases. In the first quarter of 2024, U.S. crude exports to Europe were around two million barrels per day, with the rest heading to Asia. The Netherlands, France, Germany, Spain, Denmark, Italy, and Sweden are the top U.S. energy importers.
In response, the European Commission (EC) expressed openness to further discussions on strengthening the relationship with the U.S., particularly in the energy sector. An EC spokesperson emphasized the EU's commitment to diversifying energy sources, especially after phasing out Russian energy imports due to the Ukraine conflict. Despite this, EU countries continue to import Russian gas, with an expected increase in LNG imports from Russia in 2024.
Trump, who will take office on January 20, has threatened to impose broad tariffs on several key trading partners, including Canada, Mexico, and China. He has frequently criticized Europe's long-standing trade surplus with the U.S. and warned that the EU could face significant consequences as a result. The EU's exports are largely dominated by Germany, with key goods including cars, machinery, and chemicals, meaning Trump's tariffs could severely impact the bloc's already struggling economy.
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