Trump Warns EU of Tariffs Over Trade Deficit and Oil Purchases

President-elect Donald Trump has issued a warning to the European Union, threatening tariffs if its member nations fail to increase their purchases of American oil and gas.

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“I told the European Union that they must address their massive trade deficit with the United States by significantly boosting their purchases of our oil and gas. Otherwise, it’s TARIFFS all the way!!!” Trump posted on Truth Social.

The United States, as the largest producer of crude oil and the leading exporter of liquefied natural gas (LNG), has seen interest from several buyers, including the EU and Vietnam, in purchasing more fuel. This interest is partly driven by efforts to avoid the imposition of tariffs.

On Saturday, December 7, 2024, President-elect Trump made his first international trip since his election victory in November, visiting the Elysee Palace in Paris, France, for the reopening of Notre Dame Cathedral. Although his inauguration is still over a month away, Trump’s diplomatic activity has already raised concerns among European officials, who have been preparing for a potential trade confrontation.

The EU faced a similar surprise during Trump’s earlier presidency in 2017 when he imposed tariffs on European steel and aluminum, citing national security concerns. In response, the bloc has since revamped its trade strategies, introducing a range of measures to counteract coercive practices.

German Foreign Minister Annalena Baerbock, speaking after a Group of Seven meeting in Italy in late November, stated, “We are well-prepared for potential changes under the new US administration. If there is a return to an ‘America first’ approach in areas like trade or climate policy, our response will be ‘Europe united.’”

The EU’s updated trade tools include an anti-coercion instrument that bolsters defenses against politically motivated trade restrictions and grants the European Commission the authority to impose retaliatory tariffs. Additionally, the bloc has adopted a foreign subsidies regulation, enabling it to exclude foreign firms benefiting from unfair state subsidies from participating in public procurement processes or mergers and acquisitions within the EU.

Trump has long expressed frustration with the EU, citing inadequate defense spending and the trade deficit between the US and the bloc. He previously referred to Brussels as a "hellhole" and has remarked that he once told a NATO member that, without meeting defense spending commitments, the US would allow Russia to “do whatever the hell they want” to the country.

Over the years, Trump has targeted nations with trade imbalances with the US, from China to Canada. Europe, already the largest importer of American LNG, received over half of US deliveries last year. Additionally, the US has emerged as a significant crude oil exporter, shipping light and medium-grade varieties to countries in Europe, Asia, and Canada over the past decade.