Trump threatens EU with trade war over oil and gas

Donald Trump is back, and he’s not wasting time revving up the transatlantic tension. Just weeks before reclaiming his seat in the Oval Office, the president-elect has fired a warning shot across the EU’s bow. His message? Buy more American oil and gas or brace yourselves for tariffs galore! That’s trade war talk right there.

Oiling the wheels of diplomacy or greasing the skids for tariffs?

Taking to his favourite soapbox, Truth Social, Trump laid it out in typical bombastic fashion:

“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. Otherwise, it is TARIFFS all the way!!!”

The bold ultimatum has EU officials scratching their heads – and perhaps rolling their eyes. But the European Commission isn’t taking the bait publicly. Trade spokesman Olof Gill calmly responded, pointing out the complex balance of trade between the two giants. While the EU enjoys a goods surplus, the US rakes in big bucks from its services sector. “We’re ready to talk,” Gill said, diplomatically, “including on shared interests in energy.”

Turning up the heat

It’s not all hot air from Trump, though. Since cutting ties with Russian energy over Putin’s ongoing assault on Ukraine, Europe has turned to Uncle Sam for its energy fix. American liquefied natural gas (LNG) now powers nearly 38% of EU LNG imports, making the US a top supplier.

But is that enough for Trump? Apparently not. With pipelines from Norway feeding another 30% of the bloc’s total gas needs, it seems Trump wants to muscle in on the Norwegian monopoly too. Is he pushing for a literal “America First” energy policy?

Brussels keeps it cool

Despite Trump’s fiery rhetoric, it’s unclear whether his demands came through official channels or just his social media megaphone. EU spokesperson Stefan de Keersmaecker played it safe, confirming only that they’d “seen the tweets.” While Brussels maintains its stance on strengthening ties, it’s anyone’s guess how Trump’s play will shape trade talks.

A tariff-laden Christmas?

Trump’s threats aren’t new – his first stint in the White House saw similar threats of trade wars. Now, as he prepares for round two, Europe braces for what could be a turbulent relationship. Whether it’s all bluster or a serious shake-up, one thing is clear: Trump isn’t about to make his second term smooth sailing for the EU.

As Brussels shrugs off the bluster and prepares to negotiate, only time will tell if this showdown ends in a handshake – or a hard-hitting tariff hike.

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