Trump Threatens EU with Tariffs Over Trade Deficit and Energy Purchases

Donald Trump, soon to be the U.S. president, threatened to impose tariffs on the European Union (EU) unless it reduces its trade deficit with the U.S. by buying more oil and gas. In 2022, the U.S. imported $553.3 billion worth of goods from the EU, while it only exported $350.8 billion to the EU, creating a trade deficit of $220.5 billion.

EU Commission President Ursula von der Leyen had suggested in November that the U.S. could supply more liquefied natural gas (LNG) as a replacement for Russian energy. In response to Trump's threats, an EU spokesperson pointed out that the U.S. also benefits from a trade surplus in services with the EU and said the bloc is open to talks.

Trump has made similar threats to other countries like Canada, Mexico, and China, and if carried out, these tariffs could impact the global economy.