US president-elect Donald Trump delivers remarks at Mar-a-Lago in Palm Beach, Florida. Reuters
US president-elect Donald Trump delivers remarks at Mar-a-Lago in Palm Beach, Florida. Reuters

Trump tells EU to buy US oil and gas or risk tariffs



US president-elect Donald Trump on Friday said that the EU may face tariffs if the bloc does not reduce its growing deficit with the US by making large oil and gas purchases.

“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,” Mr Trump said in a post on Truth Social, which is owned by Trump Media.

“Otherwise, it is TARIFFS all the way,” he added.

In October, Mr Trump said that the EU would “pay a big price” for not buying enough American exports if he won the election.

"I'll tell you what, the European Union sounds so nice, so lovely, right? All the nice European little countries that get together," Mr Trump said during a rally in Pennsylvania, after promising to pass the "Trump reciprocal trade act".

"They don't take our cars. They don't take our farm products. They sell millions and millions of cars in the United States. No, no, no, they are going to have to pay a big price," he said.

The US is the EU’s largest trading partner and already a major supplier of crude oil and liquefied natural gas (LNG).

The EU’s trade surplus with the US grew to €15.3 billion ($15.9 billion) in August this year, from €13 billion in the same period in 2023, according to official data.

The bloc’s exports to the US rose by 3 per cent to €41.9 billion while imports dropped by nearly 4 per cent to €26.6 billion.

The US became the world’s largest LNG exporter last year as many European countries sought to end their reliance on piped Russian gas following Moscow’s invasion of Ukraine.

Mr Trump has also vowed to overturn the Biden administration’s freeze on new LNG export approvals.

Last year, US crude oil exports reached a record high of 4.1 million barrels per day, according to the US Energy Information Administration.

The Netherlands was the biggest buyer of American crude in 2023, followed by China, South Korea and Canada.

Mr Trump has also proposed a 60 per cent tariff on goods from China and a blanket 20 per cent tariff on all imports into the US. Last month, the incoming president said he would sign an executive order imposing a 25 per cent tariff on goods imported into the US from Mexico and Canada.

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Updated: December 20, 2024, 1:52 PM