U.S. President-elect Donald Trump has urged the European Union to significantly increase its imports of U.S. oil and natural gas or face sweeping tariffs on key exports, including cars and industrial machinery.
Trump, who takes office on Jan. 20, warned Friday that failure to address what he called the EU’s “tremendous trade deficit” with the United States could result in severe penalties. “I told the European Union they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas,” Trump wrote in a post on Truth Social. “Otherwise, it is TARIFFS all the way!!”
The European Union already sources a significant share of its energy imports from the U.S., including 47% of its liquefied natural gas (LNG) and 17% of its crude oil in the first quarter of 2024, according to data from the EU’s statistics office, Eurostat.
The EU, committed to phasing out energy reliance on Russia, has steeply increased purchases of U.S. oil and gas since 2022, following Russia’s invasion of Ukraine. However, U.S. exports have reached capacity, leaving limited scope for additional shipments unless production expands.
The European Commission acknowledged Trump’s comments and expressed willingness to collaborate on strengthening energy ties. “The EU is committed to phasing out energy imports from Russia and diversifying our sources of supply,” a spokesperson said.
The bloc has taken steps to secure alternative energy sources but faces constraints as most European refiners and gas firms are privately owned, meaning purchase decisions are driven by cost and efficiency rather than government policy.
Trump’s proposed tariffs, which could quadruple the current 2.5% levy on European cars exported to the U.S., come amid a broader push to overhaul U.S. trade policy. Trump has also threatened tariffs on top trading partners such as China, Canada, and Mexico over issues ranging from illegal border crossings to drug trafficking.
Trade experts suggest the EU could negotiate increased energy purchases to avoid tariffs. However, analysts caution that U.S. energy companies may hesitate to make significant infrastructure investments, such as new LNG export terminals, due to uncertainties surrounding long-term demand as Europe transitions to renewable energy.
The United States remains the world’s largest oil and gas producer, with crude oil exports to Europe reaching 2 million barrels per day and LNG exports to Europe comprising 66% of the total in 2023.
Despite these record numbers, expanding U.S. energy exports will require substantial investment in production capacity. According to the International Energy Agency, U.S. oil production growth is expected to slow through 2030, though natural gas output may rise to meet growing domestic and global demand.
