Summarize

Simplifying... Inshort

President Trump has threatened the EU with tariffs if they don't increase their purchase of American oil and gas.
This comes amidst fears of a potential trade war, as Trump has also proposed tariffs on Canada, Mexico, and China.
Meanwhile, the EU, a significant consumer of US energy exports, is seeking to strengthen trade ties with South American countries, but lacks a unified response to Trump's threats.

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Trump made the remarks on his Truth Social

'Buy oil, gas from US or else...': Trump threatens EU 

By Snehil Singh

Dec 21, 2024

11:15 am

What's the story

United States President-elect Donald Trump has sent a strong warning to the European Union (EU), asking it to buy more American oil and gas. In a post on his Truth Social platform, Trump said that this move is needed to reduce the trade deficit between the US and the EU. "Otherwise, it is TARIFFS all the way!!!" he added.

Open dialogue

EU responds to Trump's tariff threats

In response to Trump's tariff threats, EU spokesman Olof Gill said the bloc is open to discussions. He said the EU is ready to look at ways of enhancing its relationship with the US, especially in the energy sector. The EU is already a major consumer of American oil and gas exports, according to US government data.

Economic impact

Trump's tariff strategy sparks fears of trade war

Trump's tariff threats haven't been restricted to the EU. He had earlier proposed a 25% tariff on Canada and Mexico unless they ramped up efforts against irregular migration and drug trafficking. He has also threatened a 10% tariff on China. These moves have fueled fears in Europe of a possible trade war that could negatively impact struggling EU economies and the political fortunes of their leaders.

Trade agreement

EU's trade strategy amidst Trump's tariff threats

Recently, the EU signed a landmark trade deal with Argentina, Brazil, Paraguay, and Uruguay. The deal seeks to create a free-trade area for 700 million consumers. European Commission President Ursula von der Leyen said the deal would build trade bridges as "strong winds are blowing in the opposite direction, toward isolation and fragmentation." However, the bloc's response to Trump's tariff threats remains unclear as member states lack a unified plan.