U.S. President-elect Donald Trump has urged the European Union (EU) to increase imports of U.S. oil and gas or face tariffs on key exports, including cars and machinery.
The EU is already the largest buyer of U.S. energy, purchasing 47% of U.S. liquefied natural gas (LNG) and 17% of oil imports in early 2024, according to Eurostat.
“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,” Trump stated on Truth Social.
“Otherwise, it is TARIFFS all the way!!!” he added.
In response, the European Commission expressed willingness to strengthen energy ties with the U.S., emphasizing its commitment to diversifying energy sources and reducing reliance on Russian supplies.
Trump’s stance aligns with his broader promise to impose tariffs on major trade partners, citing a $161.9 billion goods trade deficit with the EU in 2023. While the U.S. had a goods trade deficit, it enjoyed a $104 billion surplus in services.
European oil refiners and gas firms operate privately, typically purchasing energy based on price and efficiency unless sanctions or tariffs dictate otherwise.
EU energy imports from the U.S. have risen significantly following sanctions on Russian energy due to the 2022 Ukraine invasion.
The U.S., the world’s largest oil producer, exports over two million barrels per day (bpd) of crude to Europe, with top importers including the Netherlands, Spain, France, and Germany.
“Europe is nearing its maximum capacity for U.S. crude imports,” noted Richard Price, an oil markets analyst, citing limited scope for increased imports.
U.S. LNG exports to Europe accounted for 66% of total shipments in 2023, primarily to the UK, France, Spain, and Germany.
While U.S. oil production growth is expected to slow until 2030, LNG exports could rise with government approval of additional terminals, potentially replacing Russian LNG supplies.