President-elect Donald Trump has issued a clear ultimatum to the European Union: boost imports of American oil and gas or face new tariffs. In a statement delivered on his social media platform, Trump emphasized the need for the EU to address its trade deficit with the U.S. by purchasing more U.S. energy products.
Trump has frequently criticized the EU over a range of issues, from defense spending to trade imbalances. The EU, alongside countries like China and Canada, has been a frequent target of his criticism for its trade deficits with the U.S. Europe, already a major destination for U.S. LNG and crude oil exports, received more than half of U.S. LNG deliveries in 2023, highlighting its central role in American energy trade.
The EU’s trade deficit reached $161.9 billion in 2023, with a shortfall of 155.8 billion euros. Most European oil refiners and gas companies are privately owned, meaning governments have limited influence over purchasing decisions unless sanctions or tariffs are imposed.
The U.S. is a key energy supplier to Europe. In December 2024, Europe imported approximately 9.4 million barrels per day (b/d) of crude oil, with 4.4 million b/d from light sweet crude. The U.S. contributed about 1.8 million b/d to this total. In the liquefied natural gas (LNG) market, the U.S. remains a top supplier, with European imports of U.S. LNG more than doubling from 22 million metric tons in 2021 to 58 million metric tons in 2023, accounting for 68% of U.S. LNG volumes delivered last year.
Despite this increase, Trump’s demand for additional purchases aims to address the $209 billion trade deficit that the U.S. recorded with the EU in 2022.
European leaders are open to discussing energy cooperation to avoid potential tariffs. European Commission President Ursula von der Leyen has suggested that U.S. LNG could help replace Russian imports, aligning with Europe’s strategy to diversify energy sources and strengthen energy security.
However, analysts caution that while boosting U.S. energy imports may reduce the trade deficit, it is unlikely to fully eliminate it. Additionally, reallocating U.S. energy exports to Europe could impact supply to other key regions, particularly Asia, a major buyer of American LNG.
As Trump’s inauguration approaches, the EU faces the challenge of balancing the demand for increased U.S. energy imports with the complexities of its internal energy market and existing international trade commitments.
