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

President-elect Trump on Friday threatened tariffs on the European Union (EU) unless the bloc purchases large quantities of American oil and gas to make up for its growing deficit with the U.S.

“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 posted on his social media site, Truth Social. 

"Otherwise, it is TARIFFS all the way!!!”

However, the EU purchases the lion's share of American oil and gas and no additional volumes are available unless the U.S. increases output or volumes are re-routed through Asia, Reuters reported, citing U.S. data. 

The U.S. provides 47 percent of the EU gas imports, according to the news service, which cited data from statistics office Eurostat, and oil imports from the U.S. represented 17 percent of its supply for the first quarter of 2024. 

Reuters noted that the U.S. has a goods trade deficit with the EU of $161.9 billion in 2023 and in service, the U.S. had a surplus of $108 billion, Eurostat data show. 

Trump has said he views the threat of tariffs as a critical negotiating tool.

Earlier, he threatened 25 percent tariffs on America’s neighbors Mexico and Canada to force stricter border security and an additional 10 percent tariff on China to force maximum penalties for drug traffickers.