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US President-elect Trump warns the European Union to address the US trade deficit through large-scale oil and gas purchases or face potential tariffs, signaling a shift in trade relations.

Trump threatens tariffs if EU doesn't buy more oil, gas

Trump, who takes office in January, has made sweeping threats of slapping tariffs on US trading partners -- including Canada, Mexico and China -- which could send reverberations across the global economy.

US president-elect Donald Trump on Friday threatened the European Union with tariffs if the bloc does not reduce its "tremendous" trade gap with Washington through 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," Trump said in a post on his Truth Social platform in the early hours of Friday.
"Otherwise, it is TARIFFS all the way!!!"
According to US figures, goods imports from the EU were $553.3 billion in 2022, while its exports to the bloc were $350.8 billion.
This puts the US goods trade deficit with the EU at $202.5 billion that year.
Trump, who takes office in January, has made sweeping threats of slapping tariffs on US trading partners -- including Canada, Mexico and China -- which could send reverberations across the global economy.
Accusing Canada and Mexico of allowing the United States to be flooded with illicit drugs and undocumented migrants, he had announced a 25 percent import tariffs, while also vowing at least 10 percent against China, Washington's Asia-Pacific rival.
Canada, Mexico and China make up three of the biggest US trading partners.
Earlier this month, the European Union concluded a massive trade deal with four South American countries -- Argentina, Brazil, Paraguay and Uruguay -- which aims to create a 700-million-customer free-trade area.
EU Commission Chief Ursula von der Leyen had said the agreement would build trade bridges as "strong winds are blowing in the opposite direction, towards isolation and fragmentation" -- comments largely seen as a nod to Trump's threats to hike tariffs.
Some analysts have said Trump's tariff threat could be bluster, or an opening shot for leverage in future trade negotiations when he comes into office.
But Trump has continually insisted that "properly used" tariffs would be positive for the US economy.
"Our country right now loses to everybody," he told reporters at his Florida residence earlier this week. "Tariffs will make our country rich."

trade deficit

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