Donald Trump said the European Union must buy oil and gas from the United States to balance its “huge deficit” with the world's largest economy, or face tariffs.
US President-elect Donald Trump said on Friday that the European Union must buy American oil and gas to make up for its “tremendous deficit” with the world's largest economy or face tariffs.
“I told the European Union that they must make up their tremendous deficit with the United States by purchasing on a large scale our oil and gas,” Trump said in a post on Truth Social.
“Otherwise, TARIFFS all the way!!!” he added.
Trump has promised to impose tariffs on most importsif not all, and said that Europe would pay a high price for having had a large trade surplus with the United States for decades.
Trump, who will take office on January 20, has already promised heavy tariffs to three of the United States' largest trading partners: Canada, Mexico and China.
The European refining industry belongs to large oil companies and trading houses and countries have no say over the origin of purchases. Owners typically purchase their resources based on price and efficiency.
U.S. exports of oil and natural gas are already flowing to Europe as market conditions make those purchases more attractive compared to those from rival producers.
U.S. crude exports to northwest Europe are likely to slow early next year, after hitting a record high in November, as arbitration for transatlantic shipping has slammed and freight rates have risen, several said. analysts this week.