EU will face tariffs if bloc fails to increase US oil, gas imports: Trump

US President-elect Donald Trump said on Friday the European Union should step up US oil and gas imports or face tariffs on the bloc's exports that include goods such as cars and machinery. make anews headline from it

The EU already buys the lion's share of U.S. oil and gas exports, according to U.S. government data, reports Reuters.

No extra volumes are currently available as the United States is exporting at capacity, but Trump has pledged to further grow the country's oil and gas production.

"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, opens new tab on Truth Social.

"Otherwise, it is TARIFFS all the way!!!," he added.

The European Commission said it was ready to discuss with Trump how to strengthen what it described as an already strong relationship, including in the energy sector.

"The EU is committed to phasing out energy imports from Russia and diversifying our sources of supply," a spokesperson said.

The United States already supplied 47% of the European Union's liquefied natural gas imports and 17% of its oil imports in the first quarter of 2024, according to data from EU statistics office Eurostat.

Trump, who takes office on Jan. 20, has vowed to impose tariffs of 10% on global imports into the U.S. along with a 60% tariff on Chinese goods - duties that trade experts say would upend trade flows, raise costs and draw retaliation against U.S. exports.

The U.S. ran a $208.7-billion goods trade deficit with the EU in 2023, according to U.S. Census Bureau data. Although the U.S. runs a surplus with the EU on services, Trump has focused mainly on goods trade, frequently complaining about the bloc's car exports to the U.S. with few vehicles shipped east across the Atlantic.

German and Italian car exports currently face a 2.5% U.S. tariff, which could quadruple if Trump makes good on his threats.

Trump has also vowed to authorize hefty tariffs on the top three U.S. trading partners, Mexico, Canada and China, on his first day in office if they fail to stem illegal border crossings into the U.S. and trafficking of the deadly opioid fentanyl.

William Reinsch, a trade expert at the Center for Strategic and International Studies, said the EU could negotiate its way out of Trump's tariffs.

"This could be a win-win, telling them to buy something they want and need anyway," Reinsch said.

However, most European oil refiners and gas firms are private and governments have little say on where their purchases come from unless authorities impose sanctions or tariffs. The owners usually buy their resources based on price and efficiencies.

The U.S. is already producing and exporting record volumes of oil and gas and increasing those would require significant investment, especially for LNG export terminals.

Reinsch noted that while there is demand in Europe now for U.S. oil and gas to replace shunned Russian supplies, long-term demand is unclear with the transition to renewable energy sources. Companies will be reluctant to invest if they think current demand is transitory, Reinsch said.

The EU has steeply increased purchases of U.S. oil and gas following the block's decision to impose sanctions and cut reliance on Russian energy after Moscow invaded Ukraine in 2022.

The United States has grown to become the largest oil producer in recent years with output of over 20 million barrels per day of oil liquids, or a fifth of global demand.

U.S. crude exports to Europe stand at around 2 million bpd, representing over half of U.S. total exports, with the rest going to Asia.

The Netherlands, Spain, France, Germany, Italy, Denmark, and Sweden are the biggest importers, accordin…