Trump Threatens EU with Tariffs on Oil

President-elect Donald Trump has issued an ultimatum to the European Union, demanding large-scale purchases of U.S. oil and gas or face potential tariffs. Trump's statement on his Truth Social platform underscores the ongoing trade imbalance, where the U.S. had a goods and services trade deficit of $131.3 billion with the EU in 2022. EU leaders are keen to avoid a trade war and have been exploring increased purchases of U.S. liquefied natural gas (LNG) to strengthen relations. Despite the EU's dependency on U.S. energy supplies, individual countries face challenges as private firms dictate purchase decisions based on market conditions. European officials are preparing for possible retaliatory tariffs should Trump proceed with his threats, reflecting the tense economic landscape post-2024 election. The potential for renewed trade conflicts evokes memories of Trump's previous tariffs during his presidency, which prompted significant diplomatic efforts from the EU.