WEST PALM BEACH, Fla. (AP) – President-elect Donald Trump on Friday threatened to impose tariffs on the 27 countries that make up the European Union unless they take steps to increase imports of U.S. goods. Added to country list.
Shortly after 1 a.m., President Trump posted on social media: “I have told the European Union that they must make up for their huge deficit with the United States with large purchases of oil and gas.” “Otherwise, there will always be tariffs!!!”
According to the Census Bureau, the trade imbalance between the United States and the EU in goods in 2023 was $209 billion. Imports from Europe were $576 billion, and exports from the United States were $367 billion.
President Trump’s transition team did not respond to questions seeking clarity on its message and, despite its candor, remained unclear about next steps.
When President Trump threatened to impose 25% tariffs on Canada and Mexico in November, the leaders of both countries met with him to resolve the tension. But there is no one in the European Union who can make the natural gas and oil purchase commitments on behalf of the 27 member states that President Trump is seeking.
European Commission Spokesman Olof Gil responded to Trump’s post, saying: “We stand ready to discuss with President-elect Trump ways to further strengthen our already strong relationship, including discussing common interests in the energy sector.” Ta.
Gill said the EU was already “committed to phasing out energy imports from Russia and diversifying supply sources.” Given that the new government has not yet taken office, I will not go into details about what will happen in the future. ”
Scott Linthicum, vice president of the libertarian group Cato Institute, said President Trump’s comments on European trade are likely given that natural gas exports to the continent have already increased after Russia’s invasion of Ukraine in 2022. He said it was difficult to understand what he meant.
“What we really need to figure out in all of this is that President Trump is laying the groundwork for future negotiations,” Linthicum said. “For better or worse, this means a lot of what we’re going to see over the next four years.”
While there is a $209 billion trade imbalance, a more complex relationship lurks beneath these numbers. Companies such as German automaker BMW can import the parts needed to assemble vehicles at their factories in South Carolina, so total trade is tied to the flow of goods within European companies that employ American workers. It will also be reflected.
More than half of the liquefied natural gas imported by the EU and UK in 2023 came from the US, according to the US Energy Information Administration. The amount of LNG sent to the EU and UK has tripled since 2021.
On Tuesday, Energy Secretary Jennifer Granholm issued a statement based on new research showing that free exports of LNG could raise domestic prices and increase carbon emissions. Mr. Trump ran for president on the idea that increasing oil and gas production would lower costs for U.S. voters who are dissatisfied with the still-lingering 2022 surge in inflation.
President Trump’s call for Europe to buy more oil and natural gas is nothing new. He achieved these goals during his first term as president, reaching an agreement with then-European Commission President Jean-Claude Juncker in 2018 to increase LNG sales to Europe.
The problem with the deal, as the Kleinman Center for Energy Policy at the University of Pennsylvania pointed out, is that the U.S. “cannot force companies to send products to specific regions or countries,” and the They cannot be forced to buy fossil fuels.
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