Jan 20, Monday 2025: Newly elected President Donald Trump has escalated tensions with the European Union by threatening to impose tariffs unless the EU increases its purchases of American oil and gas.
These claims by Trump prompted the EU to prepare for potential trade conflicts and to consider Trump’s threats have prompted the EU to gear up for a potential trade war.
Trump’s latest tariff threats were announced on December 20 last year shortly after 1 a.m., when he posted on social media that the EU must “make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas.” If the EU does not comply, Trump warned, “it is TARIFFS all the way!!!”
The EU had a trade deficit of $209 billion with the U.S. in 2023, importing $576 billion from Europe and exporting $367 billion from the U.S. The EU does not have a central authority that can commit to such massive purchases, as these decisions are usually made by individual member states.
The EU is preparing to defend its interests in response to Trump’s threats. The European Commission has declared it is ready to discuss ways to strengthen the relationship with the U.S., including in the energy sector. The EU is already committed to phasing out energy imports from Russia and diversifying its sources of supply. However, the Commission has also indicated that it stands ready to defend its interests if necessary.
The EU is adopting a multilateral response strategy; engaging bilaterally with the U.S. on efforts to avoid the application of tariffs, ensuring a continuing effective rules-based trading system and its network of trade agreements and partnerships. Also prepared for eventual retaliation the threat of Danish tariffs can serve as a catalyst that sparks a trade conflict between the U.S. and the EU as well.
The EU is pursuing a policy to maintain an equally balanced and cooperative relationship with the U.S. to further protect its economic and strategic interests. Keep Reading Questiqa.com and Questiqa.in for more
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