Trump warns of potential tariffs if EU fails to increase purchases of U.S. oil and gas.

A spokesperson for the European Union stated that the 27-member bloc, which already purchases the majority of U.S. oil and gas exports, is open to dialogue with President-elect Donald Trump. This comes after Trump threatened to impose tariffs on the EU unless it increases its purchases of American oil and gas—a move that marks his latest economic warning ahead of his inauguration next month.

Trump, who is set to assume office on January 20, has already signaled plans to impose significant tariffs on key U.S. trading partners, raising concerns of potential disruptions to the global economy. Last month, he announced plans for 25% tariffs on Canada and Mexico if they fail to curb irregular migration and drug trafficking across their borders with the U.S. He also proposed an additional 10% tariff on China, the United States’ primary geopolitical rival.

Responding to Trump’s latest threat, an EU spokesman emphasized the bloc’s readiness to negotiate and highlighted the U.S.’s significant trade surplus in services with the EU. 

Data from the U.S. government indicates that the EU already accounts for the majority of American oil and gas exports. Additional volumes may not be readily available unless U.S. production increases or shipments are diverted from other markets, such as Asia.

In 2022, U.S. goods imports from the EU totaled $553.3 billion, while exports to the bloc reached $350.8 billion, resulting in a goods trade deficit of $202.5 billion.

Reporting from Brussels, Al Jazeera’s Jonah Hull noted that Trump’s tariff threats have heightened fears of a potential trade war in European capitals. “The prospect of a trade war with the U.S. raises concerns about its impact on already fragile EU economies and the political futures of leaders across Europe,” Hull reported.

He added that the EU currently lacks a unified strategy to address Trump’s demands. “Should they agree to purchase more oil and gas, something they’ve already expressed willingness to do? Or should they prepare retaliatory tariffs as they did during Trump’s first administration? Perhaps a combination of both could strengthen their negotiating position,” Hull speculated.

Meanwhile, the EU recently finalized a significant trade deal with four South American nations—Argentina, Brazil, Paraguay, and Uruguay. The agreement aims to establish a free-trade zone encompassing 700 million consumers. European Commission President Ursula von der Leyen hailed the deal as a step toward building trade bridges amid “strong winds blowing in the opposite direction, towards isolation and fragmentation”—a statement widely interpreted as a response to Trump’s tariff threats.

While some analysts suggest Trump’s rhetoric may be a negotiating tactic to secure leverage in future trade discussions, the president-elect has consistently defended tariffs as a tool to benefit the U.S. economy. “Our country right now loses to everybody,” Trump said this week. “Tariffs will make our country rich.”