LONDON: U.S. President-elect Donald Trump said on Friday that the European Union may face tariffs if the bloc does not cut its growing deficit with the United States by making large oil and gas trades with the world’s largest economy.
“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 Truth Social.
“Otherwise, it is TARIFFS all the way!!!,“ he added.
Trump has promised to impose tariffs on most if not all imports, and said Europe would pay a heavy price for having run a large trade surplus with the U.S. for decades.
Trump, who takes office on Jan. 20, has already pledged hefty tariffs on three of the United States’ largest trading partners – Canada, Mexico and China.
The European refining industry belongs to oil majors and trading houses and the governments have no say on where the purchases are coming from. The owners usually buy their resources based on price and efficiencies.
U.S. oil and natural gas exports already flow to Europe when market conditions make those purchases more attractive versus rival producers.
U.S. crude oil exports to northwest Europe are likely to slip early next year after hitting a record high in November, as the arbitrage for transatlantic shipments has slammed shut and freight rates have climbed, analysts said this week.
