Trump adds EU to list of trade partners he threatens with tariffs

President-elect Donald Trump added the 27 countries that make up the European Union to the list of trade partners he’s threatening with tariffs — unless the group takes steps to import more U.S. goods, US News reports.

“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,” Trump posted on social media. “Otherwise, it is TARIFFS all the way!!!”

In 2023, the United States’ trade imbalance with the EU on goods was $209 billion, according to the Census Bureau. There were $576 billion in imports from Europe and $367 billion in exports from the United States.

Trump’s transition team did not respond to questions seeking greater clarity on the message, which for all its bluntness was unclear on next steps.

When Trump threatened Canada and Mexico with 25% tariffs in November, the leaders of both countries spoke with him to try to resolve any tensions. But the European Union lacks a single figure who can make the purchase commitments of natural gas and oil on behalf of its 27 member states that Trump is seeking.

EU Commission spokesperson Olof Gill said in reaction to Trump’s post that “we are ready to discuss with President-elect Trump how we can further strengthen an already strong relationship, including by discussing our common interests in the energy sector.”

Scott Lincicome, a vice president at the libertarian Cato Institute, said it was difficult to parse what Trump was trying to say relative to European trade, given that natural gas exports to the continent are already up after Russia’s 2022 invasion of Ukraine.

“What we really need to chalk all of this up to is Trump laying the groundwork for future negotiations,” Lincicome said. “This is for better or worse a lot of what we’re going to see for the next four years.”

More than half of the liquified natural gas imported by the EU and the United Kingdom in 2023 came from the United States, according to the U.S. Energy Information Administration. The volume of LNG going to the EU and UK has tripled since 2021.

Trump’s demands on Europe to buy more oil and natural gas were not especially new. He also made them during his initial term as president and in 2018 reached a deal with Jean-Claude Juncker, then-president of the European Commission, to sell more LNG to Europe.

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