By GB News (Politics) | Created at 2024-12-20 11:19:29 | Updated at 2024-12-20 17:56:35
6 hours ago
Donald Trump has issued a stark ultimatum to the European Union, threatening widespread tariffs unless the bloc increases its purchases of American oil and gas.
The threat marks Trump's latest confrontational stance on international trade as he prepares to return to office in January.
The US president-elect took to his Truth Social platform early Friday, declaring: "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!!!"
Donald Trump threatened to impose heavy tariffs on the EU
REUTERS
The EU has signalled a readiness to retaliate over Trump's latest threats
GETTY
The European Union has signalled both willingness to negotiate and readiness to retaliate over Trump's latest threats.
European Commission President Ursula von der Leyen suggested during a recent EU leaders' meeting that the bloc could increase American liquefied natural gas purchases.
"Why not replace [Russian gas] by American LNG, which is cheaper for us and brings down our energy prices?" von der Leyen said, addressing trade deficit concerns.
However, EU Ambassador to the US Jovita Neliupšienė struck a more defensive tone last month, warning: "If there are some new frictions for the trade, the European Union will be ready, actually, to react to that."
The EU's trade relationship with America remains crucial, with exports to the US reaching £576.3billion in 2023.
Trump has pledged to impose a 60 per cent tariff on all Chinese goods
REUTERS
The latest tensions echo Trump's previous clashes with the EU during his first presidency when he imposed 25 per cent tariffs on steel and 10 per cent on aluminium imports.
That move sparked a trade war, with the EU retaliating through tariffs on American goods worth around £6billion.
The experience has led Brussels to strengthen its defences. The EU has overhauled its trade sanctions regime to allow quicker responses to future disputes.
German Foreign Minister Annalena Baerbock recently stated: "If the new US administration pursues an 'America first' policy in the sectors of climate or trade, then our response will be 'Europe united'."
The EU has also introduced rules to block companies benefiting from state aid from bidding for government contracts.
Europe is already the largest recipient of American liquefied natural gas, with more than half of US deliveries going to the Continent last year.
The EU's energy purchasing patterns have shifted dramatically since Russia's invasion of Ukraine, as the bloc seeks to reduce its dependence on Moscow's supplies.
While European nations like Germany have diversified their energy sources, including deals with Qatar, there remains potential for increased American imports.
The United States currently holds the position of the world's largest crude oil producer and biggest LNG exporter.
Some LNG buyers, including the EU, have already discussed increasing their fuel purchases from the US, partly to ward off potential tariff threats.
