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Trump Threatens Tariffs Over EU Oil and Gas Purchases

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Washing ton D.C: US President-elect Donald Trump has issued a stern warning to the European Union (EU), threatening to impose tariffs unless the bloc significantly increases its oil and gas imports from the United States.

Addressing the Trade Gap

In a post on his Truth Social platform early Friday, Trump stated:
“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!!!”

According to U.S. trade data, the country imported $553.3 billion worth of goods from the EU in 2022 while exporting only $350.8 billion. This disparity resulted in a $202.5 billion trade deficit, which Trump has vowed to address aggressively.

Tariffs as a Negotiation Tool

Trump has been vocal about using tariffs as leverage in trade negotiations. Known for his confrontational stance on trade, he has previously targeted key U.S. trading partners, including Canada, Mexico, and China, with similar threats.

  • Canada and Mexico: Accused of enabling illegal drugs and undocumented migration into the U.S., Trump proposed a 25% import tariff on goods from these nations.
  • China: A 10% tariff was promised as part of his ongoing efforts to counterbalance trade with Washington’s primary Asia-Pacific rival.

Trump has reiterated that tariffs, when “properly used,” can benefit the U.S. economy. At a recent gathering at his Florida home, he stated, “Tariffs will make our country rich.”

EU’s Trade Deal with South America

The European Union’s recent trade agreement with Argentina, Brazil, Paraguay, and Uruguay could complicate Trump’s demands. The pact, aimed at creating a massive 700-million-customer free-trade zone, was described by European Commission Chief Ursula von der Leyen as a move against “isolation and fragmentation,” a likely response to Trump’s tariff threats.

Mixed Reactions to Trump’s Threat

While Trump’s tariff threats may seem like an opening gambit for future negotiations, they have sparked widespread speculation:

  • Analysts: Some view the threats as a strategic move to gain leverage.
  • Supporters: Trump’s base believes tariffs can bolster the U.S. economy by leveling the playing field in international trade.
  • Critics: Others warn of potential economic repercussions, including strained relations with the EU and increased costs for U.S. consumers.

Looking Ahead

As Trump prepares to take office in January, his hardline approach to trade is likely to dominate global economic discussions. Whether the EU will capitulate to his demands for increased oil and gas purchases remains to be seen.

For now, Trump’s threats have set the stage for a high-stakes trade battle that could reshape U.S.-EU economic relations.

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