US President-elect Donald Trump warned the European Union (EU) on Friday that it could face tariffs unless it reduces its significant trade deficit with the United States by purchasing more oil and gas.
In a post on his Truth Social platform, Trump stated, “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 US trade deficit with the EU stood at $202.5 billion in 2022, with imports from the EU totaling $553.3 billion, while exports to the EU were only $350.8 billion.
This threat of tariffs is part of Trump’s broader strategy of imposing tariffs on key US trade partners, including Canada, Mexico, and China. Trump previously announced a 25% tariff on imports from Canada and Mexico, as well as a potential 10% tariff on China, accusing these countries of issues related to drugs and immigration.
Earlier in December, the EU signed a major trade agreement with four South American nations—Argentina, Brazil, Paraguay, and Uruguay—creating a free trade area for 700 million people. This agreement was viewed as a counter to Trump’s protectionist rhetoric.
While some analysts speculate that Trump’s tariff threat could be a negotiating tactic, he has consistently argued that tariffs, if applied correctly, could benefit the US economy. “Our country right now loses to everybody,” Trump said. “Tariffs will make our country rich.”
