In a late night social media post Donald Trump issued an ultimatum to the European Union. The bloc must increase imports of American oil and gas, or face sweeping tariffs.
“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,” the president-elect posted on his Truth Social platform in the early morning hours on Friday U.S. time.
There is a trade imbalance between the U.S. and EU. The U.S. registered a $202.5 billion (€195.13 billion) goods trade deficit with the bloc last year. Though the U.S. simultaneously enjoys a surplus in energy and services trade with the EU, Trump has focused on the deficit in goods.
However it is unclear how much more oil the Europeans can buy from the U.S. The EU is already the largest purchaser of U.S.natural gas and a significant buyer of American oil. In 2024, the U.S. supplied 47% of the EU’s natural gas imports and 17% of its oil imports.
The bloc had increased its energy imports from the Americans following its decision to phase out Russian energy due after the full-scale invasion of Ukraine.
“The EU is committed to phasing out energy imports from Russia and diversifying our sources of supply,” an EU spokesperson told Reuters.
Additionally the U.S. is at exporting capacity, with no surplus oil or gas to sell.
The threat of tariffs, which Trump has used as a threat and practice with other trade partners like Canada, Mexico, Turkey and China, could strain transatlantic relations.
In his last presidency Trump placed tariffs on European steel and aluminum, and caused several other headaches for the Europeans by bullying them over NATO spending, and pulling out of the Paris climate change agreement and the Iran nuclear deal.
European Commission President Ursula von der Leyen has expressed willingness to negotiate stronger trade ties and buy more US oil, but warned of the economic risks posed by punitive tariffs.
Former Italian Prime Minister Enrico Letta criticized Trump’s “transactional approach,” on a CNBC interview, even suggesting the EU could consider retaliatory financial measures.
Trump’s tariff threats have already unsettled markets, with European stocks falling and U.S. futures slightly dipping. Higher tariffs could also further exacerbate inflation.
